Cosmos Technology Gears Towards IPO, Launches Prospectus

Cosmos Technology International Berhad successfully launched its prospectus for an Initial Public Offering (IPO) in conjunction with its listing on the ACE Market of Bursa Malaysia Securities Berhad.

Cosmos, via its subsidiaries is an integrated water technology solutions provider principally involved in the distribution and instrumentation services of fluid control products and manufacturing of fabricated metal products for industrial applications used in the water, wastewater and oil and gas industries.

Cosmos debuted on the LEAP Market on 9 March 2020 and was subsequently voluntarily delisted on 10 November 2021 to facilitate its listing on the ACE Market. Cosmos will be the first company to be listed on the ACE Market progressing from the LEAP Market of Bursa Securities upon completion of this Listing exercise.

Cosmos is anchored by two subsidiaries, namely, Cosmos Instruments Sdn Bhd, which is the certified partner and solution partner as well as the official partner for 2 major brands of fluid control and telemetry products, and Marc Conleth Industries Sdn Bhd, which has established a good track record in the manufacturing of metal frames for shaker filters for the oil and gas industry.

The Company’s IPO entails a public issue of 64,125,300 new ordinary shares at the IPO price of RM0.35 per share.

Of the 64,125,300 shares to be issued, 12,825,000 shares will be made available for application by the Malaysian public through balloting, 7,880,000 shares will be allocated to eligible directors, employees and persons who have contributed to the success of the Group, 11,357,600 shares will be set aside for private placement to selected investors and 32,062,700 shares will be offered via private placement to Bumiputera investors approved by the Ministry of International Trade and Industry.

Cosmos Technology International Berhad Managing Director Dato’ Chong Toh Wee said, “2022 is a momentous year for Cosmos as we commence the next phase of our journey – listing on the ACE Market of Bursa Securities. This listing exercise will enable us to enhance our corporate image among our customers, suppliers, employees, and other stakeholders, as well as provide funding for the expansion of our business.”

The IPO is expected to raise total gross proceeds of RM22.44 million, of which Cosmos has earmarked RM10.0 million for the acquisition of a new building (a semi-detached factory comprising factory, office and warehouse areas) located in Balakong, Selangor, RM3.50 million for the purchase of new machineries, RM1.50 million for the repayment of bank borrowings, RM4.44 million as working capital, while the remaining RM3.0 million to defray listing expenses.

Dato’ Chong added: “Our capability in customising fabricated metal products and connecting technology and software-based solution for the benefit of our customers has helped us establish a good track record over the years. The favourable prospect of oil and gas, water and wastewater industries due to the increased demand will primarily drive the growth of the fluid control, telemetry product and fabricated metal products market. The market will be propelled by factors like the turnaround in these key industries.”

“With this IPO, we will be able to streamline and consolidate our operations and purchase new machineries to enable us to increase our manufacturing capacity and capability that can take us to even greater heights,” Dato’ Chong added.

On the other hand, Independent Non-executive Chairperson of Cosmos, Datuk Phang Ah Tong, expressed that the growing industrialisation, rising living standards, and the rapidly growing population in Malaysia are projected to present attractive prospect for market growth.

“We expect more water projects such as the upgrading and building of water treatment plants and the replacement of ageing water pipes to be rolled out by the Government as part of its intention to lower the national NRW level to 25% by 2025. As for metal frames for shaker filters, the division is benefiting from the growing opportunities within the oil and gas industry value chain generated by the substantial capital expenditures required to monetise new oil and gas discoveries.”

“The future prospects of Cosmos are optimistic, underpinned by the promising opportunities in the sectors in which it operates, and supported by the company’s competitive strengths and advantages,” added Datuk Phang.

Mercury Securities Sdn Bhd is the Principal Adviser, Sponsor, Underwriter and Placement Agent for the IPO. Vice President, Corporate Finance of Mercury Securities Sdn Bhd, Jason Chin shared, “The Group has an established track record of approximately 18 years as a reliable distributor of fluid control products for the water and wastewater industries and 12 years in manufacturing of fabricated metal products for oil and gas industry. Today marks another milestone as Cosmos embarks on the IPO for its listing on the ACE Market progressing from the LEAP Market. We believe that Cosmos will be able to leverage this IPO to attain its growth plans while elevating its corporate reputation and brand name.” 

Upon listing on the ACE Market of Bursa Securities, Cosmos will have an estimated market capitalisation of RM89.775 million, based on the issue price of RM0.35 per share and the Company’s enlarged share capital of 256.50 million shares.

Pursuant to the launch of Cosmos’ prospectus, applications for the public issue are open from today and will close on 22 September 2022 at 5.00pm. The Group is scheduled to be listed on the ACE Market of Bursa Securities on 6 October 2022.

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