MSC Singapore Share Float Goes Ahead (Tin)

Jan. 25 -- Malaysia Smelting Corporation (MSC) has launched an offering to raise Sg$43.8 million (approximately US$34.2 million) for a secondary listing on the Singapore stock exchange. The IPO offer opened on 21 January and will close at noon local time on Tuesday.

MSC, which has earmarked the bulk of its expected proceeds for developing new tin mines, is offering 25 million new shares in Singapore at $1.75 apiece. The issue comprises a public offer of one million shares and a placement of 24 million shares, the Business Times newspaper reported. Of the expected net proceeds of about $40.1 million, MSC said it hopes to use $26.2 million for developing its mines in Malaysia and Indonesia. About $8.3 million will be used to buy plant and machinery while $5.6 million will be for general working capital.

'We need to raise funds to grow,' said MSC chief executive Mohd Ajib Anuar. He added that Singapore was chosen for MSC's secondary listing because of the large number of institutional funds that are located in the Republic, making it attractive for a firm based in an industry characterised by long lead times and a huge capital outlay. 'This fund-raising is only the first step towards possibly more capital raising in the future. If we want to continue to grow, we will need more capital. So why not position ourselves now to be in a market where we can have a very strong platform for capital raising?' he said.

MSC and its 75% owned Indonesian subsidiary PT Koba Tin produced 45,381 tonnes of refined tin in 2010, up 3.5% from 43,862 tonnes in 2009.