KUCHING: Precision engineering parts manufacturer MMIS Bhd (MMIS) made its debut on the Leading Entrepreneur Accelerator Platform (LEAP) Market of Bursa Malaysia Securities Bhd yesterday with the opening price of RM0.12, 2 sen or 20 per cent premium over its IPO price of RM0.10.
MMIS placed out 50 million new ordinary shares representing 10 per cent of the company’s enlarged share capital to selected sophisticated investors at 10 sen per share, raising a total of RM5 million. Upon its debut, MMIS will have a market capitalisation of RM50 million.
The company manufactures precision engineering parts and provides services for multinational customers in the semiconductor industry value chain and also cater for a wide range of industries, including but not limited to medical, engineering, electronic packaging, oil and gas, power generation and automotive.
At the listing ceremony, MMIS managing director Loh Chin Soon said: “The precision engineering industry in Malaysia has shown promising growth prospects. With our strong portfolio of customers and assets, we are confident that MMIS will be well-positioned to ride on the industry’s growth in the long-term.
“Presently, the average utilisation rate of our computer numerical control (CNC) machines is at approximately 73 per cent while our production space is fully utilised. In anticipation of increasing orders, we will need more production space.
“As such, we plan to use part of the proceeds raised from the listing and bank borrowings to enlarge our current facility and increase floor production with our recent acquisition of a 4,252 sqm (1.05 acre) parcel of land beside our existing production facility to increase floor production space from 32,400 sq ft to 66,600 sq ft by end of 2020,” he added.
MMIS said its machinery is also able to undertake a wide range of specifications that allow them to expand its offerings to future and existing customers, as well as to penetrate various industries to acquire new customers.
“We intend to leverage on our capabilities, technological know-how and proven track record to further expand our range of offerings to our existing customers, and to acquire new customers via targeted sales and marketing activities.
“Since we have existing customers in the medical and engineering industries, we believe that we can expand our product and service offerings in these new market segments,” he added.
The firm’s wholly-owned subsidiary, Multi Mould Industries Sdn Bhd (MMI), for the financial year ended 30 June 2018 (FY18) registered a revenue of RM17.02 million, an 82 per cent increase from RM9.34 million posted in the previous financial year.
Its profit before tax for FY2018 was RM5.27 million – 207 per cent higher than RM1.71 million registered in the last financial year. On August 30, 2019, MMIS made its first interim unaudited financial report Bursa announcement for financial year ended June 30, 2019 (FY19) with revenue RM13.57 million and profit after tax RM3.49 million after dispensing non-recurrence listing expenses of RM0.59 million.
Meanwhile, its subsidiary, MMI’s unaudited FY19 registered a revenue of RM13.57 million with profit after tax RM4.065 million amidst the severe trade tension between US and China.