Master Tec Grouip Behhad (MTEC) is expected to list on the Ace Market of Bursa Malaysia Securities Berhad on January, 29, 2024 where the initial public offering (IPO) will issue 15,810,000 new shares at 39 sen per share, to raise nearly RM61.659 million.
MTEC, principally engaged in manufacturing and distributing a wide range of high safety, quality and performance low voltage (LV) power, control and instrumentation and solar direct current (DC) power cables, will issue 285.6 million shares in the initial public offering (IPO), including 158.1 million new shares and 127.5 million offering shares, totalling equivalent to 28% of the enlarged share capital.
Some 51 million new shares will be open for application to the Malaysian public under which 2.144 million shares will be reserved for qualified directors and employees, and 105 million shares will be privately allocated to specific investors.
The entire enlarged issued shares are: (i) 51,000,000 IPO shares made available for application by the Malaysian public; (ii) 2,144,000 IPO shares made available for application by our eligible directors and employees; (iii) 104,956,000 IPO shares by way of private placement to selected investors; and (iv) 127,500,000 IPO shares by way of private placement to identified Bumiputera investors approved by the Ministry Of Investment, Trade And Industry.
The company said that of the above funds, RM41.17 million (66.77%) has been reserved for the construction of new factories, of which RM16.78 million is used to build new factories 4 and 5, and RM24.39 million is used to purchase new machinery and equipment. A total of RM16.289 million (26.4%) will be used for working capital and the remaining RM4.2 million is for listing-related expenses.
The company currently has no dividend policy, but aims to distribute 30% of its net profit to shareholders every year, depending on the operating performance of its subsidiaries.
SJ Securities is the main advisor, sponsor, underwriter and placement agent for this listing.
