KUALA LUMPUR: 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
Non-independent executive director and CEO Vincent Chua Boon Hong said the company targets to commence the installation of the first two new aluminium extrusion lines by the second quarter of 2025, the remaining two new aluminium extrusion lines will be installed by the second quarter of 2026.
“With the expanded production capacity, we will be better positioned to serve a wider range of customers, and we are confident that this will improve the group’s financial performance.
“This expansion will enable the group to market a higher quantity of aluminium products to its diversified portfolio of customers, which spans construction companies, property developers, aluminium products manufacturers, wholesalers, to solar PV industry engineering, procurement, construction and commissioning companies in Malaysia,” he said at the launch of Winstar Capital’s initial public offering (IPO) prospectus today.
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.
Winstar Capital’s 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.
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.
Based on the IPO price of 35 sen per share, the listing exercise is expected to raise RM19.79 million for Winstar Capital. Further, based on the enlarged share capital of 290 million ordinary shares and the IPO price, the companyis expected to have an indicative market capitalisation of RM101.5 million.
Of the RM19.79 million raised from the IPO, 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.
“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,” Chua said.
In 2023, WCB ventured into solar PV system installation services through its subsidiary, Winstar Solar Sdn Bhd, he said.
“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 to provide our solar PV system installation services to EPCC players in the solar PV industry in Malaysia.”
The company plans to list on the ACE Market of Bursa Malaysia on Dec 19. TA Securities Holdings Bhd serves as principal adviser, sponsor, sole underwriter and sole placement agent for Winstar Capital’s IPO.
