KUALA LUMPUR: Mi Equipment Holdings Bhd, a wafer-level chip-scale packaging manufacturer, aims to raise RM190.89 million from its initial public offering (IPO) exercise, says group chief executive officer and executive director Oh Kuang Eng.
He said RM140 million would be utilised for capacity expansion with the construction of two new factories in Bayan Lepas and Batu Kawan over the next two years. Currently, our facilities are located on rented properties.
“Another RM36.79 million would be set aside for general working capital and the remaining RM14.1 million for research and development and to defray listing expenses.
“When the RM65 million Bayan Lepas factory is ready in the first quarter of 2019, we will transfer our operations to the new facility,” he told reporters after launching the company’s IPO prospectus yesterday.
Oh said the construction of the RM75 million Batu Kawan factory would commence end-2019, right after the completion of the 200,000 sq ft Bayan Lepas factory.
“Each factory will house 45 wafer-level chip-scale packaging sorting machines and will enable the company to run at maximum capacity.
“Both factories will increase monthly average production up to four times from the current level, which only uses 12 machines per factory,” he said.
Oh said after the expansion, overseas exports would take up 80-85 per cent of total production from the current 70 per cent.
The company exports to China, Taiwan, South Korea and Japan in Northeast Asia (NEA).
“We also export to Southeast Asian countries such as Thailand, Singapore and the Philippines, as well as, to Mexico, US and Europe.
“With the expansion, we are targeting more business from new and existing customers in NEA,” he added.
Mi Equipment is enroute for listing on the Main Market of Bursa Malaysia on June 20, 2018.
The IPO would involve 152.95 million ordinary shares, comprising a public issue of 134.43 million new shares and an offer for sale of 18.52 million existing shares to approved Bumiputera investors at an issue price of RM1.42 per share. — Bernama