Cape EMS Berhad which is principally an investment holding company and involved in the provision of electronics manufacturing services (EMS), today launched the prospectus for the Company’s initial public offering (IPO).
Based on the retail price of RM0.90 per share, the IPO exercise is expected to raise up to RM155.7 million for the Group through a public issue of 173.0 million new Cape EMS shares, of which: –
· 40.3% of the proceeds will be utilised for the setting-up of a new cleanroom facility and purchase of new automated production lines for EMS operations;
· 34.1% will be utilised for the construction of a New Senai 226 Warehouse and installation of automated storage facilities;
- 13.2% will be allocated for working capital;
· 3.0% will be utilised for purchase of new machinery and equipment for die cast manufacturing related services;
· 2.4% will go towards the installation of energy saving cooling system; and
· 7.0% is to defray the listing-related expenses.
A total of RM78.0 million is expected to be raised through the offer for sale exercise involving 86.7 million existing Cape EMS shares by the selling shareholders of the Cape EMS. The total gross proceeds from the offer for sale will accrue entirely to the selling shareholders.
Based on the enlarged share capital of 923.0 million shares post-IPO and the retail price of RM0.90 per share, Cape EMS’s market capitalisation works out to be approximately RM830.7 million.
Christina Tee, the Non-Independent Managing Director/ Group CEO said, “Our humble beginnings started from providing EMS for industrial electronic products from a rented factory in Johor. Since then, we have expanded our product portfolio significantly to include both industrial and consumer electronic products such as wireless communication equipment, smart utility data collection equipment, point of sales terminals, household appliances and electronic cigarettes, and we now serve both regional and overseas markets.
Our strong financial performance has provided us with the resources to continue to invest into our manufacturing facilities to be ready to capture more market share by taking on more orders for new products from existing and new customers in both the industrial and consumer electronic products segment.
The projected growth of the global semiconductor and electronics markets will drive the demand for EMS, and we have set sights on the huge growth potential of both the local and global EMS industries. We intend to construct a new warehouse and install automated storage facilities in the new warehouse. We also intend to set-up a new cleanroom facility and purchase new automated production lines for our EMS operations to enhance our production capacity. We will install an energy saving cooling system at our existing Senai 227 Factory and purchase new machinery and equipment for die cast manufacturing related services. We are optimistic that the added production capacity and increasing automation facilities will enhance our operational efficiency and help to reduce reliance on manual labour.”
Lee Jim Leng, the Group Managing Director/ CEO of Hong Leong Investment Bank Berhad said “Having steered the Group for approximately 10 years, Christina has played an instrumental role in growing the Group’s business to what it is today, building a strong foundation to further expand the Group’s business operations towards becoming a leading global EMS company. We have no doubt that this listing exposure will further strengthen Cape EMS’s corporate profile as it embarks on its future business expansion.”
For this IPO exercise, Hong Leong Investment Bank Berhad is the Principal Adviser, Joint Bookrunner and Joint Underwriter while AmInvestment Bank Berhad is the Joint Bookrunner and Joint Underwriter.
