BUSINESS

ACE MARKET DEBUTANT MASTER TEC OPENS FLAT AT 39 SEN 

29/01/2024 03:09 PM

KUALA LUMPUR, Jan 29 (Bernama) -- Wires and cables manufacturer Master Tec Group Bhd made a flat debut on the ACE Market of Bursa Malaysia Securities Bhd today at its initial public offering (IPO) price of 39 sen per share.

The group aims to raise RM61.66 million from the IPO, with RM24.39 million or 39.55 per cent of the proceeds allocated for the purchase of new machinery and equipment, and RM16.78 million or 27.22 per cent designated for the construction of two new medium voltage (MV) power cable manufacturing plants in Alor Gajah, Melaka.

Meanwhile, RM16.29 million or 26.42 per cent is allocated for general working capital and the remaining RM4.2 million or 6.81 per cent for listing expenses.

Chief executive officer Tee Kok Hwa said the company aims to market its new MV power cables primarily to capital-intensive manufacturing industries.

“These include automotive plants, semiconductor fabrication plants, chemical plants, data centres, electric vehicle charging station facilities, renewable energy facilities and manufacturing plants," he told a press conference after the listing ceremony today.

Tee said that the group's expansion plan has been in motion since last year and is expected to be completed by the fourth quarter of this year.

Master Tec recorded a net profit of RM5.78 million in the third quarter ended Sept 30, 2023 (3Q FY2023) and a net profit of RM19.41 million for the cumulative nine-month period ended Sept 30, 2023, mainly driven by a better product mix and higher profit contribution from the sales of aluminium-cored wires and cables. 

After the listing, the group aims to distribute 30 per cent of its annual audited profit after tax attributable to shareholders as dividends, subject to business performance and cash flow requirements of the group every year.

SJ Securities Sdn Bhd serves as the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.

At midday, Master Tec’s shares eased to half-a-sen to 38.5 sen with 90.45 million shares traded.

-- BERNAMA


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