Winstar Capital, the Malaysian investment holding company engaged in three core areas, namely manufacturing of aluminium products, the trading and distribution of building materials, and the installation of solar PV systems, has announced plans for a special Bumiputera share placement.
41.45 million new shares to be offered
The placement will be up to 41.45 million new shares, which will be offered to the investors approved by the Ministry of Investment, Trade and Industry (Miti). The move is aimed at fulfilling the company’s Bumiputera equity requirement. The proposed placement, which makes up 12.5 per cent of Winstar’s enlarged share capital, will have its issue price fixed at a later date, the aluminium products manufacturer said in a filing to Bursa Malaysia.
“Under listing rules, Winstar must allocate 12.5 per cent of its enlarged issued shares to Bumiputera investors approved or recognised by Miti, either within five years of its ACE Market debut on Bursa Securities, or within one year of meeting the profit threshold for a Main Market listing,” said the company.
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For listed companies like Winstar Capital, Bursa Malaysia requires that a certain percentage of their shares be allocated to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI). This is known as the Bumiputera equity requirement, and it is designed to ensure that indigenous Malaysians have meaningful participation and ownership in the corporate sector.
Earnings & main market eligibility
Winstar recorded annual earnings of RM7.4 million (RM7.4 million) for the financial year ended December 31, 2024 (FY2024), which it said meets the profit threshold required for a Main Market listing on Bursa Securities. Based on an illustrative issue price of 58 sen per share, the proposed placement could raise about RM24.04 million. The bulk of the proceeds will go towards working capital, particularly the purchase of aluminium billets, and the key raw material for its aluminium extrusion business.
In FY2024, billet purchases totalled RM64.58 million, compared with RM52.05 million in FY2023 and RM41.36 million in FY2022. The company expects the special issue to be completed by the end of December 2025. TA Securities has been appointed as the principal adviser and sole placement agent for Winstar’s proposed special issue.
The aluminium products manufacturer made its Bursa Securities debut on December 19, 2024, with an initial public offering priced at 35 sen per share, raising RM19.79 million in gross proceeds. Its largest shareholder is Sunview Group Bhd (KL:SUNVIEW), which holds a 24.15 per cent stake. On Thursday, Winstar’s share price closed 1.5 sen higher, or 2.59 per cent, at 59.5 sen, valuing the company at RM173 million.
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