KUALA LUMPUR: Minox International Group Bhd
aims to raise RM22.5 million from its initial public offering (IPO) on the ACE Market, comprising a public issue of 90 million new ordinary shares.
Based on the IPO price of RM0.25 per share and its enlarged issued shares of 360 million shares, Minox’s market capitalisation upon listing will be RM90 million.
It said the majority, or 57.9 per cent of the proceeds will be utilised towards business growth, including product development and deployment (RM4 million), construction of a warehouse (RM4 million), setting up a new warehouse in Singapore (RM5.01 million), and repayment of bank borrowings (RM4.50 million).
Minox is a distributor of stainless steel sanitary valves, tubes and fittings.
Managing director Cheong Chee Son said in tandem with the group's impending listing, the company has charted a clear three-pronged growth strategy.
"Firstly, we intend to strengthen our presence in the semiconductor industry where we see great potential where we are set to introduce our new vacuum fittings and valves to be used in semiconductor production lines such as electronic components, solar cells, storage media and LED manufacturing plants.
"Next, we plan to construct our fourth warehouse in Puchong, Selangor which will give us an additional storage area of about 18,690 square feet to support our growing business volume,” Cheong said in a media statement.
Cheong said in order to facilitate their growth and expansion of business in Singapore, a new warehouse in Singapore has been set up with an expected storage area of 7,500 square feet.
"It will provide us with additional capacity to store our new vacuum fittings and valves for the semiconductor industry as well as to store inventories that cater to our customers in Singapore and other overseas markets, such as Bahrain, Cambodia, Denmark, Germany, India, Japan, South Korea, Myanmar, Sri Lanka, Spain and the United Arab Emirates.
"This new warehouse in Singapore will allow us to store additional inventories which in turn may lower our average cost per unit by leveraging on Singapore’s free trade agreements with its trade partners,” he added.
Applications for the public issue are open from today and will be closed on Oct 3, 2023 at 5:00 pm. Minox is slated to be listed on Oct 17. - Bernama
