SPECIALTY pole maker Mestron Holdings Bhd has today proposed to transfer the listing and quotation for its entire issued share capital and outstanding warrants from the ACE Market to the Main Market of Bursa Malaysia Securities Bhd.
A filing with Bursa Malaysia today shows that the leading manufacturer of specialty poles in the country has also proposed an amendment to the constitution of MHB to facilitate the implementation of its proposed transfer exercise.
“The group is in a healthy financial position with no accumulated losses based on its latest audited consolidated statement of financial position as of Dec 31, 2022,” commented Mestron Holdings’ managing director Por Teong Eng.
A Bursa Malaysia filing also shows that Mestron has satisfied the profit requirements criteria for the group’s aggregate adjusted profit after tax (PAT) attributable to owners of the company for the past five financial years ended (FYE) Dec 31, 2018 to 2022 amounting to RM27.20 mil with adjusted PAT attributable to its owners of RM8.25 mil for FYE 2022, being the most recent financial year.
According to the Securities Commission Malaysia’s (SC) Equity Guidelines, an ACE Market-listed company may seek a listing transfer to the Main Market if it meets the profit requirements with at least RM20 mil aggregate PAT for the past three to five full financial years with a PAT of at least RM6 mil for the most recent financial year.
Mestron’s proposed transfer is expected to enhance the group’s prestige and reputation as well as enabling it to achieve greater recognition and acceptance among investors, particularly institutional investors.
“It would also promote the group’s corporate image, leading to greater recognition and confidence to clients, sub-contractors, business partners, bankers, employees and shareholders,” Por pointed out.
He further noted that Metron which was listed on June 8, 2019 with a market capitalisation of RM126.4 mil currently boasts a market capitalisation of approximately RM385.1 mil at its latest practicable date.
“As such, the board considers the proposed transfer to be timely and beneficial to the group’s future growth and its ability to raise funds for further expansion,” justified Por. “Barring any unforeseen circumstances, the proposals are expected to be completed in 4Q 2023.”
At the close of today’s trading, Mestron was up 0.5 sen or 1.2% to 42 sen with 11.56 million shares traded, thus valuing the company at RM415 mil. – June 12, 2023
