The electronics manufacturing services (EMS) provider is well-positioned to benefit from the upswing in the automotive industry, as the automotive supply chain continued to improve.
Betamek provides one-stop EMS solutions to automotive makers and is optimistic that the demand for its vehicle audio visual (AV) products and vehicle accessories will continue to grow given its major customer Perodua continues to see rising demand for its vehicles.
For the record, Perodua recently announced its third quarter 2022 (3Q22) sales where it sold 69,011 vehicles in 3Q22, as compared with 65,719 units in 2Q22. On year-to-date comparison, sales rose by 64.9% to 196,354 units from January to September 2022 compared with 119,093 units sold in the same period last year.
As hybrid, electric and autonomous driving vehicles gain global market share, Betamek is in a unique position to leverage this growing market trend, and expand and diversify its product offerings with competitive solutions.
“Over the years, the Company has been expanding its product portfolio by including new automotive electronic solutions and technologies required to complement the features of its products,” Encik Mirzan bin Mahathir, Managing Director of Betamek said.
“We consider that there are still many untapped opportunities for product segments in relation to Advance Driver Assistance Systems (ADAS), entertainment and connectivity, Internet of Things (IoT) and accessories of vehicles,” he added.
“We intend to focus on research and development (R&D) activities within these areas of end-product applications, which involves the inter-networking of devices embedded with electronics, sensors, actuators and network connectivity. The concept of inter-networking including Bluetooth, Wi-Fi, 4G, 5G and other future technologies are driving the automotive industry towards the design of new generation products,” he remarked.
“As at 31 August 2022, we are still at the early stages of undertaking joint R&D with our technology partners, and we have commercialised some of these technologies as features in Perodua’s latest vehicle models. We will continue to identify new
technologies that we consider to have significant growth potential and introduce these as features in our product offering, particularly those which may have synergistic potential with our existing key product categories,” he elaborated.
Under the listing exercise, 67.5 million new shares, representing 15.0% of the enlarged share capital at an issue price of RM0.50 per share, have been issued.
Of the 67.5 million new shares, 22.5 million new shares are made available to the Malaysian public via balloting; 13.5 million new shares for its eligible Directors, employees and persons who have contributed to the success of Betamek Group
under Pink Form Allocations while the remaining 31.5 million new shares are earmarked for private placement to selected investors.
The existing shareholders of the Company, Iskandar Holdings has made an offer for sale of 45.0 million existing shares to selected investors by way of private placement, as part of its listing exercise.
Based on the enlarged share capital of 450.0 million shares, Betamek is expected to have a market capitalisation of RM225.0 million.
M & A Securities is appointed as the Adviser, Sponsor, Underwriter and Placement Agent for the IPO exercise.
