MQTech out­lines di­ver­si­fi­ca­tion plans

> Firm mov­ing into higher tech­nol­ogy man­u­fac­tur­ing, theme park busi­ness with pro­ceeds from rights is­sue

The Sun (Malaysia) - - SUNBIZ -

GE­ORGE­TOWN: MQ Tech­nol­ogy Bhd (MQTech) is di­ver­si­fy­ing into higher tech­nol­ogy in­dus­try and theme park busi­ness via its RM41.84 mil­lion rights is­sue.

MQTech ex­ec­u­tive di­rec­tor Lim Soon Seng said as part of its plan to in­crease sales, the group is mak­ing ef­forts to re­duce its ex­ist­ing re­liance on the hard disk drive in­dus­try, by pro­duc­ing fab­ri­cated pre­ci­sion prod­ucts (eg tool­ing and dies) and com­po­nents used in med­i­cal and other in­dus­tries such as elec­tron­ics as well as au­to­ma­tion equip­ment.

“Our group in­tends to in­vest RM12.5 mil­lions from the pro­ceeds of the rights is­sue to ex­tend the built-up area of our Pe­nang fac­tory from the ex­ist­ing 30,181 sq ft to 41,995 sq ft to cater for the ex­pan­sion of its pro­duc­tion ca­pac­ity to pro­duce larger pre­ci­sion parts and fab­ri­cate pre­ci­sion prod­ucts and com­po­nents used in med­i­cal and other in­dus­tries, such as elec­tron­ics as well as au­to­ma­tion equip­ment,” Lee said in a state­ment.

The con­struc­tion of the ex­ten­sion to the Pe­nang fac­tory is ex­pected to com­mence in the first quar­ter of 2017 and com­pleted within eight months.

“We in­tend to utilise RM9.60 mil­lion from the rights is­sue to pur­chase the equip­ment and ma­chiner­ies for the Pe­nang fac­tory, which in­clude 5-axes CNC ma­chine, ver­ti­cal CNC milling ma­chine, CNC turn mill and pro­file grinder,” said Lim.

These ma­chines are ex­pected to en­large bill­able ca­pac­ity from the cur­rent RM3.13 mil­lion to RM6.98 mil­lion per year.

“Our group is also presently ne­go­ti­at­ing to man­u­fac­ture au­to­ma­tion equip­ment for a po­ten­tial cus­tomer. The sales or­ders, if se­cured, are ex­pected to gen­er­ate ag­gre­gate rev­enue of RM20 mil­lion over a pe­riod of 18 months,” said Lim.

MQTech will also be in­vest­ing RM15.9 mil­lion from the rights is­sue pro­ceeds into a new theme park, called “Malacca Ex­plorer Re­sort – Dive Park Zone” on a re­claimed land mea­sur­ing 9.16 acres in Kle­bang.

The de­vel­op­ment of the Malacca Ex­plorer Re­sort will be car­ried out in two phases. The first phase con­sists of an arena stage with to­tal gross floor area of 40,128 sq ft which was com­pleted in Septem­ber 2015, as well as a pop-up mar­ket, which is a re­tail space us­ing 40-footer mo­bile cabin struc­ture, to be com­pleted in the first quar­ter of 2017.

The first phase of the theme park is ex­pected to be launched in the first quar­ter of 2017, while the sec­ond phase of the theme park is cur­rently at the ini­tial con­cep­tual de­sign and plan­ning stage which is ex­pected to be fi­nalised by the first half of 2017. The sec­ond phase will have a ho­tel, shoplots and var­i­ous wa­ter rides.

MQTech on­go­ing re­nounce­able rights is­sue is on the ba­sis of three rights shares with two free war­rants for ev­ery ex­ist­ing share at an is­sue price of 10 sen per rights share. The free war­rants would en­ti­tle the war­rant hold­ers to sub­scribe new MQTech share at the ex­er­cise price of 10 sen at any time within the next five years.

... Bumi Ar­mada Bhd’s float­ing, pro­duc­tion, stor­age and of­fload­ing ves­sel com­pleted its shore-based (quay­side) com­mis­sion­ing ac­tiv­i­ties in Sin­ga­pore and is on track to set sail for its next job in the North Sea.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.