Highlights

IPO Malaysia

Author: kltrader   |   Latest post: Sun, 20 Oct 2019, 9:49 AM

 

IPO - Mestron Holdings Berhad (MESTRON)

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Listing Detail:
Listing Sought: Main Market
Issue Price: RM0.16

Dates:
Offer Period Open: 25 May 2019
Offer Period Close: 3 June 2019
Tentative listing date: 18 June 2019

Number of shares:
Public Issue: 158,000,000
Private Placement: 188,750,000
Offer for Sale: 79,000,000

 

Stock Code: MESTRON

Official Announcement

INITIAL PUBLIC OFFERING IN CONJUNCTION WITH THE LISTING OF MESTRON HOLDINGS BERHAD ("MESTRON HOLDINGS" OR THE "COMPANY") ON THE ACE MARKET OF BURSA MALAYSIA SECURITIES BERHAD ("BURSA SECURITIES") COMPRISING:

(I) PUBLIC ISSUE OF 158,000,000 NEW ORDINARY SHARES ("SHARES") IN THE FOLLOWING MANNER:

  • 39,500,000 NEW SHARES AVAILABLE FOR APPLICATION BY THE MALAYSIAN PUBLIC;
  • 8,750,000 NEW SHARES AVAILABLE FOR APPLICATION BY ELIGIBLE DIRECTORS AND EMPLOYEES; 30,750,000 NEW SHARES BY WAY OF PRIVATE PLACEMENT TO SELECTED INVESTORS;
  • 79,000,000 NEW SHARES BY WAY OF PRIVATE PLACEMENT TO IDENTIFIED BUMIPUTERA INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY, MALAYSIA; AND

(II) OFFER FOR SALE OF 79,000,000 EXISTING SHARES BY WAY OF PRIVATE PLACEMENT TO SELECTED INVESTORS; AT AN ISSUE/OFFER PRICE OF RM0.16 PER SHARE, PAYABLE IN FULL UPON APPLICATION.

 

Company Overview

Mestron Holdings Berhad, an investment holding, manufactures and sells steel poles in Malaysia, Australia, Singapore, Brunei, Korea, Myanmar, Sri Lanka, and Maldives. It offers standard street light poles, decorative light poles, specialty poles, high mast poles, camera poles, traffic poles, mid-hinge collapsible poles, and oil and gas and mining light poles.

The company also provides accessories, such as service doors, junction boxes, concrete footing, and foundation bolts and nuts. It also trades in outdoor lighting products, including standard outdoor lighting products and outdoor lighting bulbs. The company supplies its products to mechanical and electrical contractors, steel pole suppliers, highway concessionaires, construction and engineering companies, electrical products distributors, and property development companies, as well as specialized contractors in the telecommunication, oil and gas, and mining industries.

Mestron Holdings Berhad was incorporated in 2018 and is headquartered in Puchong, Malaysia.

 

Address & Contact:

Jalan MU 1/9, Seksyen 10
Taman Perindustrian Meranti Utama
PT 50102 Puchong, 47120 Selangor, Malaysia

Phone: +603 8069 1815
Fax: +603 8069 1805
Website: www.mestron.com.my

 

Share Capital

  • Market Cap: RM126.4 mil
  • Shares Issue to sell: 237 mil shares (IPO 39.5 mil, Company Insider & placement 197.5 mil)

Geo

  • Malaysia: 92.7%
  • Australia: 1.8%
  • Singapore: 1%
  • Korea: 3.6%
  • Others: 0.9%

Market: Ace Market

  • Price: RM0.16 (eps: RM0.0118)
  • P/E & ROE: PE13.6, ROE15%
  • Cash & fixed deposit after IPO: RM0.0115 per shares
  • NA after IPO: RM0.07
  • Total debt to current asset after IPO: 0.61 (Debt: 27.235 mil, Non-Current Asset: 37.490 mil, Current asset: 43.938 mil)
  • Dividend policy: No fixed dividend policy.


Past Financial Proformance (Revenue, EPS)

  • 2018: RM63.680 mil (eps: 0.0118)
  • 2017: RM60.747 mil (eps: 0.0108)
  • 2016: RM44.374 mil (eps: 0.0067)
  • 2015: RM40.540 mil (eps: 0.0028)


Net Profit Margin

  • 2018: 14.6%
  • 2017: 14.1%
  • 2016: 11.9%
  • 2015: 5.4%


Use of fund

  • Expansion of Manufacturing Facility, Machines & Equipment: 51.4%
  • Working Capital: 20.5%
  • Repayment Debt: 15.8%
  • Listing Expenses: 12.3%

 

News: Mestron eyes RM25.28m from IPO for expansion

PETALING JAYA: Steel-pole maker Mestron Holdings Bhd, en route for an ACE Market listing on June 18, announced yesterday it is aiming to raise up to RM25.28 million from its initial public offering (IPO) to support its business expansion for future growth.

The bulk of the proceeds or RM13 million (51.4%) will be used to expand its main manufacturing facility and acquire more machineries and equipment, while RM5.18 million (20.5%) will be used for working capital. Of the remainder, RM4 million (15.8%) will be used to repay bank borrowings, and RM3.1 million (12.3%) will be used to pay off listing expenses.

Its executive director Gary Loon Chin Seng, who is optimistic about the company’s outlook on the back of growth opportunity in the local market, told reporters at the Mestron’s prospectus launch here yesterday that the company is looking to maintain its gross profit margin and profit after tax (PAT) margin at around 30% and 15% respectively, notwithstanding the anticipated manufacturing facility expansion.

Prices of Mestron’s main raw material — steel — has also been stabilising, with a marginal downtrend seen, Loon noted.

For its financial year ended Dec 31, 2018 (FY18), the company’s PAT grew 9.01% to RM9.31 million, from RM8.54 million last year, while revenue climbed 4.83% to RM63.68 million from RM60.75 million.

The manufacturing facility expansion will raise its production floor space from 55,000 sq ft to 96,300 sq ft, and double Mestron’s annual steel pole production capacity from 5,700 tonnes to 11,400 tonnes, Loon said.

The expansion, which is expected to be completed in the next two years, will also enhance Mestron’s manufacturing capability for specialty poles — particularly high mast poles and telecommunication monopoles — that fetch higher margins, Loon added.

As at end-April, Mestron’s order book stood at RM32 million, which will keep the company occupied for the next 12 months, said Loon.

According to Mestron’s prospectus, its IPO entails the issuance of up to 158 million shares at 16 sen per share, of which 39.5 million new shares will be made available to the Malaysian public and 8.75 million new shares to eligible directors and employees. It will also place 30.75 million new shares to selected investors, and 79 million new shares to identified bumiputera investors.


 

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MESTRON 0.115 -0.005 (4.17%) 422,200 

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