Winstar Capital Launches IPO Prospectus, Aims to Increase Production Capacity
Company Overview
Winstar Capital Bhd, an aluminium extrusion manufacturer, aims to increase production capacity by 8,580 tonnes annually to 15,285 tonnes, from 6,705 tonnes currently.
IPO Details
The company’s initial public offering (IPO) involves a public offering of 73.95 million shares, including 56.55 million new shares and 17.4 million existing shares, representing 25.5% of its enlarged issued share capital of 290 million shares.
IPO Allocation
Of the 56.55 million new shares, 14.5 million new shares will be made available for application by the Malaysian public, and 15.95 million new shares will be made available for application by eligible directors, employees, and persons who have contributed to the success of the group. The remaining 26.1 million new shares will be allocated for private placement to selected investors. There is also an offer for sale of 17.4 million existing shares, which will be allocated for private placement to selected investors.
Funding
Based on the IPO price of 35 sen per share, the listing exercise is expected to raise RM19.79 million for Winstar Capital. Of the RM19.79 million raised, RM9.55 million (48.25%) will be allocated for purchasing new aluminium extrusion press machines and equipment to be installed at Winstar Capital’s new factory in Ijok, Selangor, RM6.24 million (31.54%) for working capital needs, and RM4 million (20.21%) for estimated listing expenses.
Company History
Our entry into the midstream and downstream segments of the aluminium industry began in 2002, and over the course of almost 22 years since inception, we have experienced remarkable growth in the aluminium extrusion industry. This is attributed to our team’s capabilities in producing and distributing an array of high-quality extruded aluminium profiles, aluminium ladders, aluminium solar PV mounting structures and related accessories.
Expansion into Solar PV Industry
In 2023, WCB ventured into solar PV system installation services through its subsidiary, Winstar Solar Sdn Bhd. Additionally, we began fabricating aluminium solar PV mounting structures for the installation of solar PV systems in early 2024. This expansion will enable us to market our solar PV mounting structures and provide our solar PV system installation services to EPCC players in the solar PV industry in Malaysia.
Listing
The company plans to list on the ACE Market of Bursa Malaysia on December 19. TA Securities Holdings Bhd serves as principal adviser, sponsor, sole underwriter, and sole placement agent for Winstar Capital’s IPO.
Conclusion
Winstar Capital’s IPO is expected to raise RM19.79 million and increase production capacity by 8,580 tonnes annually. With the expanded production capacity, the company will be better positioned to serve a wider range of customers, improving its financial performance.
Frequently Asked Questions
Q: What is Winstar Capital’s IPO?
A: Winstar Capital’s IPO is a public offering of 73.95 million shares, including 56.55 million new shares and 17.4 million existing shares.
Q: How much is Winstar Capital’s IPO expected to raise?
A: The IPO is expected to raise RM19.79 million.
Q: What is the purpose of the IPO?
A: The IPO is to increase production capacity by 8,580 tonnes annually.
Q: What are the key segments of Winstar Capital’s business?
A: Winstar Capital and its four subsidiaries are involved in the extrusion of aluminium profiles and fabrication of aluminium ladders, aluminium solar PV mounting structures and related accessories, trading and distribution of building materials, and provision of solar PV system installation services.