Glostrext Berhad expects to raise RM20.1 million under its listing exercise on the ACE Market of Bursa Malaysia.
The Company plans to use RM11.7 million (58.2%) raised from the initial public offering (IPO) to expand its structural and ground instrumentation and monitoring business into Singapore, as well as for working capital.
As at 30 June 2023, Glostrext’s pile instrumentation and static load test services are mainly provided to customers in Singapore and Malaysia, while its structural and ground instrumentation and monitoring services are mainly provided to customers in Malaysia.
Ir. Dr. Lee Sieng Kai, Managing Director of Glostrext, said the Company will focus on promoting its off-site structural and ground instrumentation and monitoring services in Singapore using Glostrext WiNA platform, where such offering is in line with the current trend as many businesses and companies seeking automation to increase operational efficiency and reduce reliance on manpower.
“We will leverage on our success and existing presence in Singapore to expand our service offerings in the country by offering structural and ground instrumentation and monitoring services using Glostrext WiNA platform as part of our business growth and expansion plans.
“The expansion plan is also in line with the requirements on structural and ground instrumentation and monitoring for all construction of buildings and infrastructure in Singapore which was made mandatory in 2008 under the Building Control Regulations 2003, as we believe that we will be well-positioned to benefit from these requirements to secure sales and further grow our business in Singapore.
“We target to provide such services to completed and on-going construction projects for commercial buildings, residential buildings, industrial buildings and infrastructures.
“With our IPO proceeds, Glostrext will have the necessary resources to facilitate this business expansion. We will purchase the required instruments and equipment for the provision of such services,” he added.
Glostrext WiNA platform is a web-based platform developed in-house that leverages on a series of sensors including Internet of Things (IoT) enabled sensors and data visualisation software for remote and real time structural and ground monitoring.
A further RM1.8 million (9.0%) of the proceeds will be used to fund the research and development activities to further enhance the automation and accuracy of its service offerings.
The remainder of the proceeds will be used to repay bank borrowings amounting to RM3.3 million (16.4%) and to defray the estimated listing expenses of RM3.3 million (16.4%).
Under the listing exercise, Glostrext is issuing 105.8 million new shares (“issue shares”), representing 26.0% of the enlarged share capital at an issue price of RM0.19 per share.
Of the 105.8 million issue shares, 20.4 million issue shares will be made available to the Malaysian public via balloting; 10.2 million issue shares for its eligible Directors and employees as well as persons who have contributed to the success of Glostrext under Pink Form Allocations, while the remaining 75.3 million issue shares are reserved for Private Placement to selected investors.
As part of its listing exercise, the existing shareholders of the Company will also make an Offer for Sale of 16.3 million existing shares to selected investors by way of Private Placement.
Based on the enlarged share capital of 407.0 million shares, Glostrext is expected to have a market capitalisation of RM77.3 million after listing.
The IPO is open for subscription from today to 2 August 2023.
