How will Mestron Holdings use its RM25.28 million IPO proceeds?

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Mestron Holdings will allocate its RM25.28 million IPO proceeds across several key areas including facility expansion, working capital, debt repayment, and listing expenses.

Mestron Holdings is set to utilise the RM25.28 million raised from its initial public offering (IPO) for strategic investments and operational needs. A significant portion will be directed towards enhancing its manufacturing capabilities, with the remainder allocated to supporting day-to-day operations, strengthening its financial standing, and covering the costs associated with its public listing.
Expansion of Manufacturing Facility and Machinery Acquisition

RM13.0 million of the IPO proceeds has been designated for the expansion of Mestron Holdings' main manufacturing facility. This investment will also facilitate the acquisition of additional manufacturing machinery and equipment, aimed at supporting future business growth and increasing operational capacity.
Working Capital for Raw Material Procurement

An amount of RM5.18 million will be channelled into working capital. This funding is specifically earmarked for the purchase of raw materials, such as steel plates and steel pipes, which are essential to support the planned capacity expansion and ensure uninterrupted production.
Repayment of Bank Borrowings

Mestron Holdings plans to allocate RM4 million from the IPO proceeds towards the repayment of existing bank borrowings. This move is intended to improve the company's financial structure and reduce its debt obligations.
Defraying Listing Expenses

The remaining RM3.10 million will be used to cover the expenses associated with the IPO and listing on the ACE Market of Bursa Malaysia Securities Berhad. These costs typically include fees for advisors, underwriters, and regulatory filings.

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How will Mestron Holdings use its RM25.28 million IPO proceeds?

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