KUALA LUMPUR: Wires and cables manufacturer Master Tec Group Bhd is offering 285.6 million shares as it heads for a listing on Bursa Malaysia's ACE Market.
This comprises a public issue of 158.1 million new shares and an offer for sale of 127.5 million existing shares which collectively represent 28 per cent of Master Tec's enlarged capital of 1.02 billion shares.
Master Tec unveiled its prospectus today ahead of its listing on Jan 29.
Based on the IPO price 39 sen a share, the listing is expected to raise RM61.659 million for Master Tec.
The company said 27.22 per cent of the IPO proceeds will be used for the construction of new medium voltage power cable manufacturing plants in Melaka.
It added that 39.55 per cent will be used to purchase new machinery and equipment, 26.42 per cent budgeted for general working capital and the remaining 6.81 per cent for listing expenses.
"With the new funding Master Tec is going to raise from its IPO exercise of RM61.659 million, we plan to utilise two-third of the IPO proceeds to construct two new manufacturing plants in Alor Gajah, Melaka and to purchase new machineries and equipment to venture into the manufacturing of medium voltage (MV) power cables.
"We aim to increase our annual production capacity to produce about 3,600 tonnes of MV power cables per year and we target to commence the production of MV power cables by the fourth quarter of 2024," said managing director Datuk Lau Kim San.
Master Tec has an accumulated production capacity of up to 9,500 tonnes of wires and cables annually.
It has the capacity to produce up to a maximum of 4,000 tonnes of copper-cored wires and cables and up to 5,500 tonnes of aluminium-cored wires and cables per year.
"This expansion will enable the company to market its new products to mostly capital intensive manufacturing industries that demand higher voltage of electricity power transmission," Lau said.