DSS prospectus launch. DS Sigma is expecting to raise RM50.15mil via the issuance of 91.18 million new ordinary shares at an issue price of 55 sen per share.
KUALA LUMPUR: DS Sigma Holdings Bhd
is not unduly worried about a possible global recession that may affect some countries and corporations in 2023.
The company is upbeat about its prospects, underpinned by recent positive experiences and its upcoming listing on the ACE Market of Bursa Malaysia.
Managing director for the packaging products firm Lucille Teoh Soo Lien said the company has undergone several crises over its 20-year history including lockdowns over the past two years, adding that the group had emerged stronger.
Speaking at its prospectus launch for its proposed listing on Jan 6, Teoh said the initial public offering (IPO) exercise has iven DS Sigma the required capital injections to realise value opportunities.
“We are capturing 2.5% of the Malaysian packaging market. With this projected (economic) downturn, I believe more of our customers will be paying attention to our company because of our customer-centric ‘reduce, reuse, recycle’ principle to help them save costs,” she said.
DS Sigma is expecting to raise RM50.15mil via the issuance of 91.18 million new ordinary shares at an issue price of 55 sen per share.
According to Teoh, DS Sigma has evolved from a product-centric supplier to a supply chain packaging solutionist, by providing complete end-to-end solutions from design packaging optimisation, container loading efficiency, consignment packaging management, just-in-time delivery, assembly and packing services.
“If we can improve our customers’ profitability, we will be able to sell more and increase our own orders from them,” she said.
The group would be investing 2.4% of the proceeds or RM1.2mil on expanding its operations to Penang, which involves securing a warehouse in Batu Kawan, as well as RM7mil, to purchase automated and robotic packing machines.
DS Sigma executive director Beh Le Hao said raising the level of automation was part of the firm’s cost-saving measures as labour expenses had reduced from 10% of the group’s revenue of RM105.7mil for the financial year (FY) ended June 30 2019, to 7% of turnover for FY22.
DS Sigma posted a revenue of RM121.2mil for the FY ended June 30, 2022 and a net profit of RM21.5mil.
