EG Industries to list unit in Thailand

EG Industries Executive Chairman Terence Tea Yeok Kian (left) and CEO Alex Kang showing the range of box-built products designed and manufactured by the group. August, 26,2014. ZHAFARAN NASIB/The Star.

KUALA LUMPUR: Electronic manufacturing services (EMS) provider EG Industries Bhd plans to list its Thai unit, SMT Industries Co Ltd, on the the Stock Exchange of Thailand’s (SET) Market for Alternative Investment (Mai).

Group chief executive officer and executive director Alex Kang said the subsidiary, set up in 2006, had built a strong track record over the years in serving its customers.

“We believe there is much potential to be tapped, in light of Thailand’s position as a key manufacturing hub especially for the high-tech electronics and automatic sector,” he said in a statement.

“The proposed IPO (initial public offering) would not only unlock a certain portion of value for shareholders, but more importantly raise the working capital necessary to propel SMT Industries into realising its true potential in the regional EMS sector.”

SMT Industries supports global clientele in their EMS for computer peripherals, consumer electronics and automotive industrial products.

Its production facility, located in Prachinburi, sits on 171,716 sq ft land area with a current built-up area of 65,560 sq ft, allowing room for future expansion.

Barring unforeseen circumstances, SMT Industries is targeted to list in 2018.

SMT Industries has appointed AIRA Securities Public Co Ltd as its Thailand principal adviser for the proposed initial public offering.

EG Industries said the number of shares to be offered, issue price and targeted proceeds to be raised had yet to be determined.

The exercise is subject to regulatory approvals from Malaysia and Thailand, as well as EG Industries’ shareholders at an EGM.