Tashin Holdings Bhd chief financial officer Foong Kok Chuin said the group plans to produce wire mesh in view of robust demand for security fencing and its use in reinforced concrete slabs.

KUALA LUMPUR: Tashin Holdings Bhd (THB) plans to produce wire mesh in view of robust demand for security fencing and its use in reinforced concrete slabs.

"We see good demand in wire mesh as many business owners are upgrading their fencing from the existing chain-link. Our wire mesh will be highly durable and low in maintenance," said chief financial officer Foong Kok Chuin.

"Wire mesh is also increasingly being used in reinforced concrete slabs. We're putting in new facilities to produce wire mesh at our factory at Seberang Prai," he said in a recent interview here.

THB, which is enroute to list on the ACE Market of Bursa Malaysia on August 1 2019, expects to raise RM34.41 million from its initial public offering (IPO).

The IPO is open for subscription until July 19 2019. A total of 59.33 million new shares in THB were issued, representing 17 per cent of the enlarged share capital.

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.

THB plans to use RM17.55 million raised from the IPO to buy land in Seberang Perai, Penang for the construction of a 90,000-sq ft factory.

"We will use a further RM7.70 million to purchase machinery and equipment, RM5.96 million for general working capital and the remaining RM3.20 million for listing expenses," Foong said.

Also present was Tashin Steel assistant general manager Goo Kong Hua.

Established 18 years ago, THB is in the business of processing (slitting and shearing) 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.

C Purlin is a horizontal steel beam that has cross section in "C" shape while checkered plates are steel sheets with embossed surface in angular patterns which provide skid resistance.

THB is also a member of the Malaysian Steel and Metal Distributors' Association.

Major suppliers of cold rolled coils to THB's production lines are Boasteel Singapore Pte Ltd, CSC Steel Sdn Bhd POSCO Malaysia Sdn Bhd, Formosa Ha Tinh Steel Corp and Nippon Steel & Sumikin Bussan Corp.

After the IPO, THB's parent Prestar Holdings Bhd's 51 per cent controlling stake will be pared down to 34 per cent. Annually, THB's business contributes to a third of Prestar's revenue.