3REN eyes raising RM30.8mil from ACE Market IPO

From left: 3REN non-independent non-executive director and Malaysian Technology Development Corp CEO Mohammad Hazani Hassan, 3REN non-independent non-executive chairman Datuk Boonler Somchit, executive director and CEO Koh Dim Kuan, KAF Investment Bank Bhd CEO Rohaizad Ismail and director of corporate finance Hon Kim Teng

KUALA LUMPUR: 3REN Bhd, an automation solutions and engineering services provider, is looking to raise RM30.8 million through a public issue of 110 million new ordinary shares at an issue price of 28 sen per share under its initial public offering (IPO) prospectus launched today.

It said 62.3 per cent of the IPO proceeds will be allocated for its business expansions and operational requirements.

"(Of that), 23.4 per cent will be utilised to set up new delivery centres in Penang which are designed to undertake specific product engineering services related to the design and development of semiconductor chips.

"Another 16.6 per cent will be for research and development expenditure which includes the setting up of an innovation centre to support the development of new/enhanced solutions and equipment for its automation solutions segment.

"(An allocation of) 9.7 per cent will be channelled towards establishing a sales office in Singapore to boost its geographical presence and 12.7 per cent will be for working capital, especially on increasing headcounts of engineers and other skilled workforce," it said in a statement.

The remaining balance of the IPO proceeds will be utilised for repayment of borrowings and listing-related expenses, the group said.

Executive director and chief executive officer Koh Dim Kuan said the group sees immense potential for growth as the global semiconductor industry is set to continue expanding well into the next decade, driven by emerging technologies such as artificial intelligence and 5G adoption.

"This growth stimulus is further supported by the modernisation and transformation of manufacturing facilities towards Industry 4.0 and 5.0 technology. This enables smart factories and sustainable operations in addition to the increased outsourcing and relocation of manufacturing activities to Southeast Asia which positions us favourably in capturing these unique opportunities," he said.

3REN said the public issue portion of the IPO will be made available for subscription from today and the application will close at 5.00 pm on Wednesday, Oct 23, 2024. - Bernama