KUALA LUMPUR: Steel pole maker Mestron Holding Bhd will leverage on the government’s push for broadband network convergence to boost its revenue stream from specialty poles business.
Mestron managing director Por Teong Eng said broadband network convergence, including the 5G technology, would be a key catalyst for its manufacturing segment as it would create demand for specialty pole such as high mast and telecommunication monopole.
“The inevitable growth in broadband infrastructure is in line with Mestron’s future plan to expand its revenue stream from the sales of specialty pole due to higher gross profit margin as well as to expand its clientele in the telecommunication industry,” Por said in a statement issued in conhuction with the company’s listing on Bursa Malaysia’s ACE Market today.
Maxis Bhd, Celcom Axiata Bhd and Digi.Com Bhd have begun their 5G technology trial in Cyberjaya in April.
Por said Mestron would also benefit from the growing demand for the LED outdoor lighting products.
LED lighting products had higher specifications and quality as compared to the traditional light bulbs and thus, fetch higher sales value, he added.
“These LED products, which are more expensive have higher specifications and quality and last longer compared with the traditional light bulbs.
“Importantly, the government wants all streetlights to be LED lamps starting September 2019, in a move to save energy by as much as 50 per cent. The announcement will create demand for LED outdoor lighting products,” he added.
Currently, about 80 per cent of streetlamps in Malaysia use other forms of lighting apart from LED, which are known to be more energy-efficient and environmentally friendly than incandescent bulbs.
Under its listing exercise, Mestron raised RM25.28 million from a public issue of 158.0 million new shares at 16 sen per share.
Of this, 39.50 million new shares were made available to the Malaysian public via balloting, 8.75 million new shares for its eligible directors and employees, 30.75 million new shares via private placement to selected investors while the remaining 79.0 million new shares are earmarked for private placement to identified Bumiputera investors approved by the Ministry of International Trade and Industry.
Existing Mestron shareholders also made an offer for sale of 79.0 million shares by way of private placement to selected investors.
Based on the enlarged share capital of 790.0 million shares, Mestron is expected to have a market capitalisation of RM126.40 million.