KUALA LUMPUR: Steel maker Prestar Resources Bhd plans to list its subsidiary Tashin Steel Sdn Bhd on the ACE Market of Bursa Malaysia Securities Bhd by fourth quarter of this year.
The proposed listing will be via a special purpose vehicle, Tashin Holdings Bhd
Tashin Steel, principally involved in the processing of steel coils into slit coils and steel sheets as well as manufacturing of steel products, has a share capital of RM20 million comprising 20 million shares.
In a statement, it said 51 per cent equity interest will be owned by Prestar while the remaining 9.80 million shares or 49 per cent equity interest are owned by Formula Naga Sdn Bhd.
As part of the proposed listing, Tashin Holdings has entered into a Share Sale Agreement with Prestar and Formula Naga to acquire the entire share capital of Tashin Steel for RM144.07 million.
The Initial Public Offering (IPO) exercise involves the issuance of 59.02 million new shares in Tashin Holdings representing 17 per cent of the enlarged share capital.
Prestar said proceeds from the IPO will be used mainly for capital expenditure to support Tashin’s business expansion into the production of wire mesh products and to upgrade the existing steel processing line; to purchase a piece of industrial land for the construction of a new factory; to supplement the working capital of the Tashin Group which includes the purchase of raw materials and to be used to defray listing expenses for the IPO.