KUCHING: FoundPac Group Berhad (FoundPac) and its subsidiaries yesterday launched their prospectus in conjunction with the group’s listing of and quotation for its entire issued and paid-up ordinary share capital on the Main Market of Bursa Malaysia Securities Bhd.
To note, FoundPac deals with precision engineering parts which are sold to semiconductor manufacturers and Outsourced Semiconductor Assembly and Test companies (OSAT), or for Printed Circuit Board (PCB) design houses or fabless semiconductor companies which are used to facilitate the testing of Integrated Circuits (IC).
Speaking about the launch of the group’s prospectus, chief executive officer Lee Chun Wah said it was a testament to the efforts of the team at FoundPac, as well as its business partners, listing advisers and the regulatory authorities to reachethis point in its listing exercise.
“The proceeds from a successful listing will help drive the next phase of the group’s growth, and strengthen our business as a whole. I am both excited and delighted therefore, to welcome potential investors to be a part of this new chapter in our corporate history as we pursue an active expansion blueprint.”
FoundPac’s initial public offering (IPO) involves an offering of 40 million new ordinary shares of RM 0.10 each, at an issue price of RM0.54 per share payable in full upon application.
It comprises 18.5 million public issue shares which will be offered to the Malaysian public by way of balloting, and which 50 per cent is to be set aside for Bumiputera investors; 10.5 million public issue shares for subscription by the eligible directors, employees and business associates/persons who have contributed to the success of the group; and 11 million public issue shares to be placed out to identified investors.
Additionally, FoundPac Holdings Sdn Bhd, a major shareholder of FoundPac, will undertake an offer for sale of 92 million shares by way of placement of 55 million shares to identified investors as well as 37 million shares to Bumiputera investors duly approved by the Ministry of International Trade and Industry (MITI).
The group aims to raise up to RM21.6 million from the IPO, of which a major portion amounting to RM8 million will be used for the purchase of property, plants as well as equipment.
Of the balance, RM3.6 million will be used as working capital, RM3 million is to be allocated for Design and Development (D&D) efforts in addition to RM 4.0 million which will be used to fund the group’s overseas expansion plans.
FoundPac is expected to have a market capitalisation of approximately RM 199.8 million upon listing based on the IPO Price of RM0.54.
FoundPac established its operations in 2005, and together with its subsidiary companies are principally involved in the design, development, manufacture, marketing and sale of precision engineering parts namely stiffeners, test sockets, hand lids and related accessories.
While locally based, the Group’s products are exported for the most part to various international markets primarily in Europe and the United States (US), with the US market constituting almost 73 per cent of FoundPac’s sales in FYE2016.
The group has worked with a number of well-known established electronic companies over the years, including Broadcom Corporation, which is a US fabless semiconductor company.
Lee further shared, “In light of the positive prospects for the growth of the semiconductor industry globally, thanks in part to the continued increase in adoption of mobile devices and the Internet of Things,
“I believe the time is right to take advantage of FoundPac’s established track record, to steadily expand our market share in major markets including Milan, Italy and California in the US, where we have plans to set up new sales offices.
“Concurrently, we plan to strengthen our current capabilities through the setting up of a dedicated Design & Development team which will be focused on product development.
“To further stabilise our revenue generation the Group is also looking to diversify our customer base to include end-user industries like those in the automotive industry.”
TA Securities Holdings Bhd is acting as the Company’s Principal Adviser, sole Underwriter and Placement Agent for the IPO exercise.