Precision engineering manufacturer MMIS Bhd is proposing to raise up to RM50.32 million through a public issue as part of its planned transfer from Bursa Malaysia’s LEAP Market to the ACE Market, with most of the proceeds earmarked for expanding production capacity.
The company outlined plans to issue 148 million new shares and offer for sale up to 63.58 million existing shares. Its enlarged share capital would increase from 600 million to 748 million shares upon completion of the proposed listing.
The proposed offering uses an illustrative issue price of 34 sen per share, which has not been finalised. The final price will be determined by MMIS and its underwriter after considering the company’s financial performance, comparable listed companies and prevailing market conditions.
Of the proposed RM50.32 million fundraising, MMIS intends to allocate RM23 million for a new production plant, RM14 million for machinery, RM8.57 million for working capital and RM4.75 million for listing expenses.
To facilitate its withdrawal from the LEAP Market, MMIS is also proposing a cash exit offer for shareholders who do not wish to retain their investment through the transfer.
The offer would cover up to 90.303 million shares, representing 15.05% of MMIS’s existing issued shares not already held by the joint offerors.
The indicative exit offer price is 34 sen per share and is intended to match the final IPO price. Shareholders would be able to accept the exit offer for all or part of their holdings once it is formally implemented.
The company has been listed on the LEAP Market since September 2019.
