Malaysian equipment manufacturer Mi Equipment Holdings Bhd plans to raise RM190.87 million ($47.9 million) in its upcoming initial public offering on Bursa Malaysia Securities.
The listing of Mi Equipment on June 20, 2018, a manufacturer of wafer level chip scale packaging (WLCSP) sorting machines for the semiconductor assembly and packaging industry, is poised to be Bursa’s largest so far this year.
Local media reported that the proceeds raised will be used for capacity expansion by building two new factories in the northern Malaysian state, Penang, and for working capital as well as research and development.
The IPO comprises a total of 152.95 million shares.
Mi Equipment said 25 million shares would be offered to the public, 17.5 million shares to eligible persons and 60.449 million shares would be placed out. The remaining 31.479 million shares would be placed out to approved bumiputera (native) investors.
Currently, Mi Equipment CEO and largest shareholder Oh Kuang Eng owns 358 million shares or 98.07 per cent stake in the company. After the listing, his stake will be reduced to 68 per cent.
Theedgemarkets reported that going forward, Mi Equipment also aims to grow its export market, which is expected to contribute an average of up to 85% to its total revenue starting this year, compared to the current average of 70%, mainly derived from Northeast Asia.
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