The Malaysian company Leform Berhad, which specializes in the production of steel pipes and flat products, has announced the attraction of a strategic investor. The new partner will be NST Trading Malaysia Sdn Bhd — a subsidiary of the Japanese Nippon Steel Trading Corporation. The agreement between the parties involves a subscription for shares as part of a private placement, allowing Leform to raise approximately $6.3 million — equivalent to 25 million Malaysian ringgits.
This is reported by Finway
Details of the investment agreement and the structure of the operation
According to the terms of the agreement, NST Trading Malaysia will subscribe to 148.1 million new ordinary shares of Leform. The price per share will be approximately $0.043 (RM0.1688). The private placement covers up to 10% of the company’s existing share capital, after which the Japanese investor will hold a 10% stake in Leform Berhad.
Plans for collaboration and use of investments
Leform emphasizes that this agreement will be an important milestone for the company, as it paves the way for closer collaboration with an international leader in the steel market. Leform’s management expects that the partnership with Nippon Steel Trading will enhance supply chain efficiency, improve product distribution, and strengthen its position in the regional market.
“The involvement of Nippon Steel Trading is a testament to the confidence in our business model and the long-term prospects of the group,” said Leform’s Managing Director Low Kok Tai.
Leform plans to primarily allocate the funds raised towards the purchase of raw materials. This will allow the company to build up inventory before receiving orders, increase the speed of order fulfillment for customers, and procure steel before potential price increases, positively impacting gross profitability. Additionally, the company intends to strengthen its position in the domestic market by launching an integrated warehouse complex in Serendah, which will optimize logistics and inventory management.
Leform maintains cautious optimism regarding the future of the industry, anticipating support for major infrastructure projects in Malaysia and further industrial growth in the region.