Masteel to Raise MYR 81.5 Million from Rights Issue
Integrated steel manufacturer Malaysia Steel Works (KL) Bhd has proposed a rights issue with free detachable five-year warrants to raise up to MYR 81.5
Integrated steel manufacturer Malaysia Steel Works (KL) Bhd has proposed a rights issue with free detachable five-year warrants to raise up to MYR 81.5 million. Masteel said the rights shares would be issued on the basis of one rights share for every two existing Masteel shares held, on an entitlement date to be determined later. Subsequently, one free detachable warrant would be issued for each rights share subscribed by shareholders. From the MYR 81.5 million expected to be raised, up to MYR 69 million would be utilised for working capital requirements, while MYR 10 million would be used to repay bank borrowings, and the balance MYR 2.5 million to defray the estimated exercise expenses
Masteel managing director and CEO Datuk Sri Tai Hean Leng said “We are witnessing an upcycle in steel demand within both the local and regional markets, as governments prioritise high-multiplier infrastructure developments and construction projects to stimulate economic growth. This is clearly advantageous for established steel manufacturers like us, who have both capacity and competitiveness to reap the benefits of this recovery. To this end, our recent capital expenditure investments in employing the latest steel melting technology will optimize our cost-efficiency.”
The rights issue with warrants would expand Masteel’s share capital from MYR 239.9 million comprising 450.4 million shares, to MYR 402.9 million comprising 905.5 million shares.
Malaysia Steel Works (KL) Bhd factories are located strategically at Petaling Jaya and Bukit Raja, Klang in the state of Selangor Darul Ehsan in, Malaysia. The Bukit Raja factory produces steel bars and steel billets which are the feed stock for its rolling mills in Petaling Jaya and Bukit Raja.