Betamek in talks with partners to develop innovative product solutions for auto market

From left: Betamek executive director Fauzi Ghani, independent non-executive chairman Ahmad Subri Abdullah, managing director Mirzan Mahathir, M&A Securities Sdn Bhd managing director of corporate finance Datuk Bill Tan and head of corporate finance Gary Ting

KUALA LUMPUR: Electronics manufacturing services (EMS) provider Betamek Bhd is in talks with its technology partners to develop and introduce more innovative technologies and new product solutions that have market potential in the automotive sector.

Managing director Mirzan Mahathir said the company has been expanding its product portfolio by including new automotive electronic solutions and technologies.

"As hybrid, electric and autonomous vehicles gain global market share, Betamek is in a unique position to leverage this growing market trend and expand and diversify our product offerings with competitive solutions,” he said during the virtual launch of the company's prospectus and press conference today.

Mirzan said the group reckons that there are still many untapped opportunities for product segments in relation to advanced driver assistance systems, entertainment, connectivity, and accessories of vehicles.

"This initial public offering (IPO) exercise will be a great boost to our future research and development (R&D) activities,” he added.

Betamek expects to raise RM33.8 million from its listing exercise on the ACE Market of Bursa Malaysia on Oct 26.

The company plans to use RM7 million, or 20.7 per cent, raised from the IPO to fund R&D activities for new product development and RM6.5 million (19.3 per cent) to further expand its R&D office space, raw material storage, and ancillary facilities to cater for future growth.

A further RM3 million (8.9 per cent) of the proceeds will be used to acquire machinery and equipment for its existing factory in Rawang.

The remainder of the proceeds will be used for the repayment of bank borrowings amounting to RM10.0 million (29.6 per cent), RM3.9 million (11.4 per cent) for general working capital, and the remaining RM3.4 million (10.1 per cent) to defray listing expenses.

Based on the enlarged share capital of 450.0 million shares, Betamek is expected to have a market capitalisation of RM225.0 million.

The IPO is open for subscription from today until Oct 7, 2022. - Bernama

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