Prestar eyes RM38.6 million from Tashin listing on ACE Market

KUALA LUMPUR: Steel products and equipment maker Prestar Resources Bhd aims to raise approximately RM38.56 million from the listing of its subsidiary Tashin Holdings Bhd on Bursa Malaysia’s ACE Market.

Tashin is 51 per cent- owned by Prestar Resources with the rest owned by Formula Naga Sdn Bhd.

Group managing director Datuk Toh Yew Peng said proceeds from the listing would be utilised mainly for capital expenditure ( Capex) to support Tashin’s business expansion into the production of wire mesh products and to upgrade the existing steel processing line.

“We don’t have the exact date for the listing but it will certainly be this year pending the audit process to be finalised,” he told reporters after the company’s annual general meeting ( EGM) yesterday.

The listing of Tashin was approved by Prestar Resources’ shareholders at the EGM.

He said the listing would also depend on the market

We don’t have the exact date for the listing but it will certainly be this year pending the audit process to be finalised. Datuk Toh Yew Peng, Prestar Resources Bhd managing director

condition and resolution of the trade dispute between the US and China.

“Because of the trade war, steel prices are being suppressed?? by China because they are dumping their steel products,” he said.

The initial public offering ( IPO) exercise involves the issuance of 59.33 million new shares in Tashin, representing 17 per cent of the enlarged share capital.

Of the 59.33 million shares, 17.45 million shares will be made available to the Malaysian public via balloting, 8.72 million shares for the eligible directors and employees of Tashin and Prestar Resources, 17.45million shares for the entitled shareholders of Prestar while the remaining 15.71 million shares have been reserved for private placement to selected Bumiputra investors approved by the Ministry of International Trade and Industrial Malaysia ( MITI).

As part of its listing exercise, the existing shareholders of Tashin would also make an offer for sale of 55.49 million shares to selected investors and Bumiputera investors approved by MITI by way of private placement.

T oh sa i d af t er t he listing, Prestar Resources’ shareholdings in Tashin would be reduced to 34 per cent from 51 per cent currently.

He said on top of the proceeds raised by Tanshin, Prestar Resources as the existing shareholder would be receiving RM18 million from the listing.

He said the company is planning to use the proceeds to repay bank borrowings.

“This will reduce our net gearing to 0.5 times from 0.7 times currently,” he said. — Bernama