Leform Berhad (“Leform” or the “Group”), a homegrown steel pipes and flat steel products specialist, today announced that it has entered into a Share Subscription Agreement (“SSA”) with NST Trading Malaysia Sdn Bhd (“NSTM”), a wholly-owned subsidiary of Nippon Steel Trading Corporation, for the subscription of new shares under the Group’s ongoing private placement exercise (“Private Placement”).
Under the SSA, NSTM will subscribe for 148,101,300 new ordinary shares in Leform pursuant to the Group’s Private Placement of up to 10% of its existing issued share capital. The subscription price of RM0.1688 per share was determined based on a discount to the five-day volume weighted average market price prior to the price-fixing date, in accordance with the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad.
Upon completion, the Private Placement is expected to raise approximately RM25 million.
NSTM is principally involved in the distribution of steel and non-ferrous metals and operates as a wholly-owned subsidiary of Nippon Steel Trading Corporation, a global trading company headquartered in Tokyo with diversified operations spanning steel, industrial supply and infrastructure, foodstuffs, and textiles.
The strategic investment marks a significant milestone for Leform as it strengthens its partnership with an internationally recognised steel trading group, potentially opening avenues for deeper collaboration across supply chain integration, product distribution, and regional market development.
Mr. Law Kok Thye, Managing Director of Leform, said, “The participation of NSTM, part of the Nippon Steel Trading Corporation, represents a strong vote of confidence in Leform’s business fundamentals and long-term growth prospects. This strategic investment not only strengthens our capital base but also creates potential synergies that may enhance our supply chain resilience and market reach.”
The proceeds from the Private Placement are expected to be utilised primarily for the purchase of raw materials, enabling the Group to stock products in advance of orders, improve delivery efficiency, and procure steel materials ahead of anticipated price increases to enhance gross profit margins.
Leform believes the collaboration will complement its existing operations and reinforce its position within Malaysia’s steel supply chain ecosystem. The Group continues to focus on expanding its operational capabilities, including the imminent operational commencement of its integrated warehouse facility in Serendah, which is expected to further enhance inventory management and logistics efficiency.
Looking ahead, Leform remains cautiously optimistic about the steel industry outlook, supported by Malaysia’s ongoing infrastructure development initiatives and regional industrial expansion.
