Atech eyes RM104.73 mln IPO for expansion
KuaLa LuMPuR: Aurelius Technologies Bhd (ATech), a provider of electronics manufacturing services (EMS) for industrial electronic products en route to a listing on the Main Market of Bursa Malaysia Securities Bhd (Bursa Securities), launched its prospectus for its initial public offering (IPO).
ATech offers a comprehensive range of EMS to multinational corporations across 11 countries covering Asia Pacific, Americas and Europe. These services include engineering support services, prototyping, board assembly, mechanical assembly and test for communications devices, Internet of Things (IoT) devices, electronic devices and semiconductor component modules used by the telecommunications, transportation, power management and IoT industries.
With a long track record of 28 years, ATech has built a business based on long-term client partnerships. All top five customers are foreign companies or subsidiaries of US public-listed companies.
The IPO involves up to 103.87 million ordinary shares comprising public issue of 77.01 million shares and an offer for sale of up to 26.86 million shares. The institutional offering of up to 80.96 million shares represents 22.6 per cent of the enlarged issued shares. The retail offering of up to 22.91 million shares, representing 6.4 per cent of the enlarged issued shares, will be offered at a retail price of RM1.36 per share.
The company is expected to raise RM104.73 million in proceeds from the IPO, of which RM40 million would be used to acquire new machinery and equipment, RM29.52 million for repayment of borrowings, RM28.13 million for working capital and RM7.08 million for listing expenses.
Atech executive director and chief executive officer Lee Chong Yeow commented, “Our IPO will enable us to speed up the execution of our plan to grow, strengthen and leverage our core competency of providing EMS for industrial electronics products as well as continuing our expansion into the production of IoT modules that we started offering in early 2020.
“We are also expanding our production facilities with the construction of a new factory adjacent to our existing plant in Kulim Hi-Tech Park.
“The new factory will enable us to add floor space to grow the semiconductor component modules production, to cater for Lithium-Ion battery pack production and our existing EMS operations.
“We will have a total of 15 SMT lines by the end of 2023 from both the new factory and additions to the current factory. These new SMT lines will increase our annual capacity by 198.7 per cent for the financial year ending (FYE) 31 January 2024 from FYE21 to meet the expected increase in demand from our customers.”
For FY21, communications and
IoT products contributed 89.5 per cent to the company’s revenue, electronic devices contributed 9.4 per cent and semiconductor components contributed less than 1 per cent.
The top three countries by revenue contribution for FYE19 to FYE21 were the US, Malaysia and Singapore, which collectively accounted for 93.6, 92.7, and 89.3 per cent of the total revenue.
Maybank Investment Bank Bhd, which is part of Maybank Kim Eng Group, is the principal adviser, sole bookrunner and sole underwriter.
Maybank Kim Eng Group CEO Datin Ami Moris said, “As a direct IoT proxy, ATech is well-positioned for sustainable, accelerated growth as the demand for IoT terminal connections is expected to hit 2.37 billion by 2026. Our conversations with investors indicate that ATech is one of the most anticipated small cap IPOs in Malaysia this year.
“We are also encouraged to see that ATech is actively reducing its carbon footprint to become a best-in-class green EMS player, and is prioritising local communities through upskilling and employment opportunities. We look forward to journeying with ATech as a trusted business partner.”
Our IPO will enable us to speed up the execution of our plan to grow, strengthen and leverage our core competency of providing EMS for industrial electronics products as well as continuing our expansion into the production of IoT modules that we started offering in early 2020.
Lee Chong yeow