(L-R): Malacca Securities Sdn Bhd executive director Lim Chia Wei; Tashin Holdings Bhd non-independent non-executive director Datuk Toh Yew Pen; M&A Securities Sdn Bhd managing director of corporate finance Datuk Bill Tan; Tashin Holdings Bhd managing director Lim Choon Teik; JF Apex Securities Bhd head of dealing, equities/private, Kong Ming Ming at the signing ceremony today. Picture courtesy of Tashin.

KUALA LUMPUR: Tashin Holdings Bhd (THB) has inked an underwriting agreement with M&A Securities Sdn Bhd, Malacca Securities Sdn Bhd and JF Apex Securities Bhd for its initial public offering (IPO) exercise to list on the ACE Market of Bursa Malaysia Securities Bhd.

THB managing director Lim Choon Teik said the agreement not only reiterates the underwriter’s confidence in the company, giving a step closer towards listing on Bursa Securities.

“I believe this listing exercise would enable THB to strengthen its position in the steel processing and steel manufacturing industries as it charts its future growth story,” he said in a statement today.

THB has grown organically in the past 18 years since its inception and has ventured into processing (slitting and shearing) of steel coils into steel sheets, manufacturing of steel products comprising, steel pipes, flat bars, square bars, expanded metals, checkered plates and C Purlins as well as trading of steel products.

“By being a listed entity, we hope to further increase confidence among our investors, stakeholders and customers while we continue to work towards enhancing the long-term value of our company by providing quality products across our steel processing and steel manufacturing divisions,” added Lim.

He attributed the company’s success to its management’s experience and industry knowledge, commitment to quality as well as good and established working relationship with clients and suppliers.

The IPO would further strengthen its financial position as it embarks on the next phase of its business expansion plans.

The company said the IPO proceeds would be used mainly for capital expenditure to support THB’s business expansion into the production of wire mesh products and to upgrade the existing steel processing line.

This includes purchasing a piece of industrial land for the construction of a new factory and to supplement the working capital of the THB, such as to purchase of raw materials and to be used to defray listing expenses for the IPO.

M&A Securities is the adviser, sponsor, managing underwriter, joint underwriter and placement agent for the IPO while Malacca Securities and JF Apex Securities are joint underwriters for the IPO.

The IPO exercise involves the issuance of 59.33 million new shares in Tashin, representing 17 per cent of the enlarged share capital.

Of the 59.33 million new shares, 17.45 million new shares will be made available to the Malaysian public via balloting; 8.72 million new shares for its eligible directors and employees as well as eligible directors and employees of the Prestar Group; 17.45 million new shares for the entitled shareholders of Prestar while the remaining 15.71 million new shares are earmarked for private placement to Bumiputera investors approved by the Ministry of International Trade and Industry Malaysia (MITI).

As part of its listing exercise, the existing shareholders of the company will also make an offer for sale of 55.49 million shares to selected investors and selected Bumiputera investors approved by MITI by way of private placement.

Pursuant to the underwriting agreement, the managing underwriter and joint underwriters will underwrite a total of 43.62 million new shares made available for the Malaysian public; THB’s eligible directors and employees as well as eligible directors and employees of Prestar group and the entitled shareholders of Prestar.

M&A Securities is represented by Datuk Bill Tan, managing director of corporate finance; Malacca Securities is Lim Chia Wei, executive director while JF Apex Securities is represented by Kong Ming Ming, its head of dealing, equities/private, executive director.

THB is scheduled to be listed on the ACE Market of Bursa Securities by August 2019.

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