Tatt Giap eyes new markets
0 Comments | New Straits Times, Jun 29, 2010 | by Marina Emmanuel
TATT Giap Group Bhd, en route to a Main Market listing on Bursa Malaysia, is eyeing South America and South Africa as new export markets.
The Penang-based steel distribution and steel processing company is also looking to introduce new products like stainless steel fittings and structural steel pipes for the construction and infrastructure sectors.
Unlike countries like Malaysia where carbon steel pipes are used, Europe and the US are using structural stainless steel.
“We hope to enter the US market with this product over the next two years,” its chairman and president Datuk Siah Kok Piay told reporters in Penang after Deputy Finance Minister Datuk Donald Lim Siang Chai launched Tatt Giap’s prospectus.
In conjunction with the listing, 14.56 million new shares will be made available for subscription at an issue price of 58 sen per share.
Of the new shares issued, the company said six million shares will be made available for public subscription, two million shares will be reserved for Tatt Giap’s eligible directors and employees of the group, while 6.56 million shares will be allocated to identified investors.
In addition, 14.2 million existing ordinary shares will be offered collectively by Giapxin Sdn Bhd and Perbadanan Nasional Bhd to Bumiputera and other identified investors at an offer price of 58 sen per share. RM10,000 nominal value of irredeemable converted unsecured loan stocks will also be offered at 100 per cent of the nominal value to the local public.
“Based on the initial public offering price of 58 sen per share,” Siah said, “the group expects to raise RM8.45 million with net proceeds from the IPO to be used to pare down bank borrowings.”
“We plan to enhance and expand our product offerings, particularly in the downstream steel product area.
“Strategically, these activities will place us on a solid platform to expand market share, both locally and globally,” he added.