From left: Cape EMS non-independent executive director Lim Chue Wan, independent non-executive chairman Datuk Mohd Rabin Basir, Hong Leong Investment Bank group managing director and CEO Lee Jim Leng, non-independent managing director and group CEO Tee Kim Chin, AmInvestment Bank CEO Tracy Chen Wee Keng, Cape EMS non-independent executive director Tee Kim Yok and Hong Leong Investment Bank head of equity markets Phang Siew Loong
KUALA LUMPUR: Electronics manufacturing services (EMS) provider Cape EMS Bhd
plans to raise RM155.7mil via its initial public offering (IPO) to fund its expansion plans.
The company, which is set to list on the Main Market of Bursa Malaysia on March 10, 2023, said the public issue will entail 173 million new shares at 90 sen per share.
Of the proceeds, 40.3% will go towards the setting-up of a new cleanroom facility and purchase of new automated production lines for EMS operations and 34.1% will be utilised for the construction of a new Senai 226 warehouse and installation of automated storage facilities.
Cape EMS added that 13.2% will be used for working capital, 3% for the purchase of new machinery and equipment for die cast manufacturing-related services, 2.4% towards the installation of an energy saving cooling system and the remaining 7% to defray the listing expenses.
Meanwhile, the company said RM78mil is expected to be raised via an offer for sale exercise involving 86.7 million existing shares.
The proceeds from the offer for sale will accrue entirely to the selling shareholders.
Post-IPO, Cape EMS is expected to have a market capitalisation of about RM830.7mil based on the enlarged share capital of 923 million shares and retail price of 90 sen per share.
According to non-independent managing director and group CEO Tee Kim Chin, Cape EMS started with providing EMS for industrial electronic products but has expanded its product portfolio to include both industrial and consumer electronic products such as wireless communication equipment, smart utility data collection equipment, point of sales terminals, household appliances and electronic cigarettes for both regional and overseas markets.
"Our strong financial performance has provided us with the resources to continue to invest into our manufacturing facilities to be ready to capture more market share by taking on more orders for new products from existing and new customers in both the industrial and consumer electronic products segment," she said in a statement announcing the launch of the company's IPO prospectus.
"The projected growth of the global semiconductor and electronics markets will drive the demand for EMS, and we have set sights on the huge growth potential of both the local and global EMS industries."
Hong Leong Investment Bank Bhd is the principal adviser, joint bookrunner and joint underwriter of the IPO while AmInvestment Bank Bhd is the joint bookrunner and joint underwriter.
