KUALA LUMPUR (July 3): Winstar Capital Bhd, which manufactures aluminium products, has filed for an initial public offering (IPO) on the ACE Market to raise funds to buy new production equipment.

The proposed IPO involves a public issue of 56.55 million new shares and an offer-for-sale of 17.4 million existing shares at a price to be determined later, according to its draft prospectus posted to Bursa Malaysia. All in all, the listing would offer investors up to a 25.5% stake in the company.

Acquisition of the aluminium extrusion press machines and equipment will increase the total annual capacity to 15,285 tonnes from 6,705 tonnes, Winstar said. The company also set aside some of the proceeds as working capital, including for purchase of aluminium billets, its main raw material.

Winstar mainly manufactures aluminium profiles and ladders which makes up 57% of its revenue, and is also involved in trading and distribution of building materials, which provides 42% to its annual revenue. The company also installs solar panels, a business which the company considers non-core.

Sunview Group Bhd (KL:SUNVIEW) currently owns 30% in Winstar through its wholly owned subsidiary Vafe System Sdn Bhd. Winstar’s expansion into the provision of solar photovoltaic system installation services began with Vafe’s investment for a 20% stake back in April 2023.

Vafe then bought another 10% stake in Winstar from Mestron Holdings Bhd (KL:MESTRON) in February 2024. Sunview's stake in Winstar will be trimmed to 24.15% after the IPO.

For the latest financial year ended Dec 31, 2023, Winstar recorded a net profit of RM8.02 million on the back of RM153.69 million revenue.

Under the IPO’s public issue, Winstar plans to offer 14.5 million new shares to the public and 15.95 million to eligible persons, and 26.1 million shares to select investors through private placement.

The offer-for-sale, meanwhile, will be done through private placement to select investors. Proceeds from the sale of existing shares will accrue entirely to a group of selling shareholders including Winstar vice chairman Chua Nyok Chong and his son Chua Boon Hong, who is also the chief executive officer.

TA Securities is the IPO’s principal adviser, sponsor, sole placement agent and sole underwriter while Eco Asia Capital Advisory Sdn Bhd is the financial adviser.