MMIS seeks to raise RM5m from LEAP listing
KUALA LUMPUR: Precision engineering parts manufacturer MMIS Bhd aims to raise RM5 million from its listing on the Leading Entrepreneur Accelerator Platform (LEAP).
The company plans to issue up to 50 million new shares, representing about 10 per cent of its enlarged issued share capital, at an indicative price of 10 sen per share.
Head of corporate finance Dr Jeffrey Chin Fook Kheong said MMIS planned to use RM2 million for capital expenditure, RM2 million for working capital and RM1 million for listing-related expenses.
“The purpose of the listing exercise is for MMIS to tap the capital market for future fundraising to pursue growth opportunities, gain recognition and enhance MMIS’ stature, as well as boost market awareness of company’s services to expand customer base,” he said at the launch of information memorandum, here, yesterday.
The company plans to list on LEAP Market by August.
MMIS’ products are mainly sold to manufacturers of semiconductor manufacturing equipment and automated testing equipment in the semiconductor industry.
MMIS is expected to pursue the next growth path with ACE Market listing within 12 to 24 months after the LEAP listing.
The company is also targeting a new facility with an estimated built-up area of 27,000 sq ft under its expansion plan.
“Our production capacity now operates at an average utilisation rate of about 73 per cent while our production floor space is fully utilised.
“The construction of the new facility is expected to be completed by middle of next year.
“We also plan to amalgamate both production facilities to increase the built-up area by 7,200 sq ft and the total production space to 66,000 sq ft from 32,400 sq ft by end of next year,” said Chin.
He said the company remained positive on prospects this year even as it expected a challenging financial year ending June 30 performance due to the United States-China trade dispute.
The precision engineering industry in Malaysia had risen to RM7.1 billion last year, from RM4 billion in 2010.
In its financial year 2018, MMIS registered a revenue of RM17.02 million from RM9.35 million in 2017.
Its profit after tax in the same period grew to RM4.11 million from RM1.3 million previously.