The firm, which is a provider of electronics manufacturing services (EMS) for industrial electronic products, said of the proceeds, RM40mil will go towards new machinery and equipment, RM29.52mil towards the repayment of borrowings, RM28.13mil for working capital and RM7.08mil for listing expenses.
"Our IPO will enable us to speed up the execution of our plan to grow, strengthen and leverage our core competency of providing EMS for industrial electronics products as well as continuing our expansion into the production of IoT modules that we started offering in early 2020," said Aurelius Technologies executive director and CEO Lee Chong Yeow in a Monday statement in conjunction with the launch of its prospectus.
He added that the company is also expanding its production facilities with the construction of a new factory adjacent to its existing plant in Kulim Hi-Tech Park.
Following the completion of the new factory, there will be a total of 15 surface-mount tech (SMT) lines by end-2023 from both the new factory and additions to the current factory.
The new SMT lines are expected to increase annual capacity by 198.7% for the financial year ending Jan 31, 2024, from FY21 to meet the expected increase in demand from customers.
In the statement, the company said the IPO involves up to 103.87 million shares comprising a public issue of 77.01 million shares and an offer of sale of up to 26.86 million shares.
The institutional portion of the offering involves 80.96 million shares representing 22.6% of the enlarged issued shares.
A retail offering of up to 22.91 million, representing 6.4% of the enlarged issued shares, will be offered at a retail price of RM1.36 a share.
Of the retail offering, five million shares will be made available to directors and other eligible persons, while 17.91 million shares will be allocated to the Malaysian public via balloting.
According to the statement, Aurelius Technologies offers a comprehensive range of EMS to multinational corporations across 11 countries covering Asia Pacific, Americas and Europe.
These services include engineering support services, prototyping, board assembly, mechanical assembly and test for communications devices, Internet of Things (IoT) devices, electronic devices and semiconductor component modules used by the telecommunications, transport, power management and IoT industries.
For FYE21, communications and IoT products contributed 89.5% to the company’s revenue, electronic devices contributed 9.4% and semiconductor components contributed less than 1%.
The top three countries by revenue contribution for FYE19 to FYE21 were the USA, Malaysia and Singapore, which collectively accounted for 93.6%, 92.7%, and 89.3% of the total revenue
Maybank Investment Bank Bhd, which is part of Maybank Kim Eng Group, is the principal adviser, sole bookrunner and sole underwriter of the IPO.