Winstar Capital Bhd, an aluminium extrusion products manufacturer, expands its manufacturing capacity with the addition of new aluminium extrusion lines for the fabrication of solar photovoltaic (PV) accessories, to be partially funded by its public offering proceeds of RM19.79 million from the upcoming ACE market listing scheduled on Dec 19.
The company on Tuesday unveiled the prospectus for its Initial Public Offering (IPO) at M Resort & Hotel, Kuala Lumpur, for the public offering of 73.95 million ordinary shares comprising a public issue of 56.55 million new shares and an offer for sale of 17.4 million existing shares, representing 25.5% of the group's enlarged issued share capital of 290 million ordinary shares.
Winstar said it plans to use part of the IPO proceeds to acquire four additional aluminium extrusion lines with a combined capacity of 8,580 tonnes per annum. According to web information published by Winstar, construction work has started on Lot 903 with an approximate built-up area of 80,000 square feet to house the four aluminium extrusion lines. These new lines are expected to increase the company's total manufacturing capacity from 6,705 tonnes to 15,285 tonnes per annum.
The total estimated construction cost of the Lot 903 Facility amounted to about RM14.50 million.
During 2023, Winstar secured several purchase orders for the supply of aluminium solar PV mounting structures and was awarded contracts to provide installation services for solar PV systems. In early 2024, Winstar started to fabricate the aluminium solar PV mounting structures. Moving forward, Winstar will continue to focus on the fabrication of aluminium solar PV mounting structures and expand to include other solar PV related aluminium accessories such as brackets and clamps.
"We target to commence the installation of the first two new aluminium extrusion lines by the second quarter of 2025, with the remaining two new aluminium extrusion lines by the second quarter of 2026. 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, and wholesalers to solar PV industry engineering, procurement, construction and commissioning (EPCC) companies in Malaysia," said Winstar Capital Bhd Chief Executive Officer (CEO), Vincent Chua Boon Hong.
"Our positioning in the green and renewable energy generation segment enables us to benefit from multiple solar PV projects rolled out under Malaysia's large-scale solar programmes," added the CEO.
