Having fulfilled all requirements for the transfer of listing, Scomnet has proposed to transfer its listing to the Main Market of Bursa Malaysia, marking a new milestone for the Group that has a market capitalisation of over RM1.2 billion.
The company will be submitting its application for the Proposed Transfer within the next three months, and is positive that the proposed exercise would be completed by end-June 2023.
Scomnet makes medical devices and cables & wires for the medical, automotive and industrial segments.
Approvals are required from the Securities Commission, Bursa Securities and the shareholders of Scomnet.
The Group has achieved the minimum cumulative Profit after Tax (PAT) requirement, whereby companies seeking transfer of listing are required to record an aggregate PAT of at least RM20 million for 3 to 5 full financial years and a PAT for the most recent financial year of at least RM6 million.
Despite the impact of the pandemic, Scomnet has successfully delivered an aggregate adjusted PAT of RM63.83 million for the past 3 audited financial years ending 31 December 2019, 2020 and 2021 (FY2019 – FY2021).
For the most recent financial year ended Dec 31, 2021, Scomnet achieved an audited PAT of RM25.21 million.
For the third quarter ended Sept 30, 2022, the Group posted its highest ever quarterly net profit of RM10.1 million, on the back of revenue of RM45.14 million.
Thus, for the nine-month period of FY2022, net profit is already up by 55.6% to RM26.91 million, on revenue of RM120.98 million.
It is also noteworthy that Scomnet has also upped its dividend payout to 2 sen per share for the first time in CY2022, after paying 1.5 sen over the last three years.
“We are anticipating for the Main Market transfer as this would mark another milestone for us after our listing on the ACE Market on April 30, 1999. We hope that with our growing earnings base complemented by the Main Market status, we will be able to attract larger institutional and private equity funds who will grow together with us,” said Scomnet managing director James Shiue Jong-Zone.
“Scomnet is very much still in the growth phase. We will continue to diligently build up our existing medical and automotive businesses, while at the same time look out for earnings accretive mergers and acquisition opportunities in the medical segment,” said Shiue.
