(From left) 3REN Bhd director Teresa Tan Siew Kuan, director Joyce Wong Ai May, director Ahmad Khairuddin Abdul Rahim, executive director and chief executive officer Koh Dim Kuan, chairman Datuk Boonler Somchit, director Mohammad Hazani Hassan, director Hanita Othman, Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar, KAF Investment Bank Bhd chief executive officer Rohaizad Ismail, deputy chief executive officer Thariq Usman Ahmad and Bursa Malaysia corporate strategy director Aina Zahari at the listing ceremony of 3REN on the ACE Market of Bursa Malaysia.
KUALA LUMPUR: 3REN Bhd is optimistic about the recovery of the semiconductor industry going into 2025, as the group looks to position itself at the centre, backed by technological revolution.
3REN is primarily involved in product engineering services and engineering support for integrated circuit (IC) development, assembly and testing.
Chief executive officer Koh Dim Kuan said despite the slowdown and plenty of uncertainties in the industry this year, he anticipates a recovery next year.
“We are looking at the industry becoming better and we expect the business to continue growing, as well as our topline and bottomline to have double digit growth.
“We have plans in the pipeline for us to move up,” he told StarBiz during the group’s listing on the ACE Market of Bursa Malaysia here yesterday.
According to Koh, this includes setting up a new office in Singapore which will aim to serve its existing multinational corporations that are currently in Singapore.
He added the group also has clients within the electronic industry in Singapore that they plan to continue serving efficiently.
“Our presence there will put us in closer proximity to support clients within this region. We also want to ride on the advantage of the location for marketing activities,” he said.
On expansion plans, Koh said 3REN will focus regionally first, with plans to venture out within three to five years.
“For now, we will continue doing what we do best, but we will remain open to opportunities down the line,” he noted.
The group will also be setting up two delivery centres in Penang which will be dedicated for its product engineering segment.
Koh said the first delivery centre that is targeted to be completed by the fourth quarter of this year will be used to support customers involved in the IC design, while the second centre will be aimed at future clients and is set to open by the end of 2025.
“We expect both centres to generate revenue for us as we anticipate the said recovery.
“The government has been supportive of initiatives and investments have been coming in for this sector, so we are well positioned to ride on that trend and be well-placed for now,” he said.
Koh added the Industrial Revolution 4.0 has become a pivotal strategy for the manufacturing sector, as more companies also look to become automated.
“For overall costs to improve, automation is required. This is also set to accelerate smart factories,” he said.
Meanwhile, 3REN’s shares opened 19.6% higher at the opening bell than its initial public offering (IPO) price of 28 sen to 33.5 sen, with 11.7 million shares traded.
At closing yesterday, the stock surged 41.07%, or 11.5 sen, to 39.5 sen, with 181.04 million shares traded.Its IPO raised RM30.8mil which involved a public issue of 110 million new shares, whereby RM7.2mil will be used to set up new delivery centres, RM5.1mil will be for research and development expenditure, RM3mil will be to establish a new Singapore office and RM3.9mil for working capital.
Koh said he was happy with the group’s opening share price, adding that the recognition from the market gives them confidence to focus on growth strategies.
“The listing exercise has set us on a path to continue moving forward. We are also honoured to have been the ones to close Bursa Malaysia’s target of 42 companies to list this year.”
