KUALA LUMPUR: Tashin Holdings Bhd, which debuted on the ACE Market of Bursa Malaysia Securities Bhd this morning, slid 13% to 50.5 sen at mid-day from its offer price of 58 sen.
At 12.22pm, 44.76 million shares were traded.
Tashin is setting up a factory as well as upgrading its existing steel processing line in Seberang Prai, Penang as it expands the steel processing business segment after listing.
Tashin managing director Lim Choon Teik said the factory will have additional steel processing lines and five new wire mesh production lines with a combined effective production capacity of 50,000 mt per annum.
“We plan to utilise RM25.25 million from the initial public offering (IPO) proceeds to expand our business operations after listing” he said in a statement.
The new factory to produce wire mesh is expected to be completed by 2021.
Tashin’s current core activity is steel processing and manufacturing of steel products. Trading of wire mesh and the expansion into the manufacturing of wire mesh will enable it to have control over the supply of wire mesh. The manufacturing of wire mesh will enable the company to diversify its manufacturing products and improve its profitability.
“We believe the addition of wire mesh in our manufactured product offerings will allow us to improve our profitability and strengthen our customer base, which in turn will enhance our competitive position. Our plans to make new products will hinge on the market developments,” Lim added.
source https://www.thesundaily.my/business/tashin-debuts-on-ace-market-KK1194963
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