Aemulus to gain from weak ringgit
> Income benefits to outweigh higher material costs
KUALA LUMPUR: Semiconductor testing equipment company Aemulus Holdings Bhd, which aims to raise RM24.58 million from its listing on the ACE Market of Bursa Malaysia, expects the income benefits from the weakening ringgit to outweigh the higher material costs.
Currently, 60-65% of Aemulus’ products are exported to markets such as Singapore, China, the US, South Korea, the Philippines, Thailand and Germany.
“The income benefit actually is bigger than the cost (from the weakening ringgit),” co-founder and CEO Ng Sang Beng (pix) told a press conference after the company’s prospectus launch yesterday.
Aemulus is involved in the design and development of automated test equipment for the testing of radio frequency front-end devices that are used in wireless applications such as mobile phones, tablets and wireless networking devices.
The company’s initial public offering entails an issuance of 87.79 million new shares at 28 sen each. A total of 21.94 million shares are made available for the Malaysian public, 13.17 million shares for eligible directors, employees and business associates, and 52.68 million shares via a private placement to selected investors.
Besides that, there will be an offer for sale of 43.89 million shares by way of private placement to identified investors.
Upon listing, Aemulus will have a market capitalisation of RM122.88 million.
Ng said market response to the company shares has been encouraging, with placement shares oversubscribed.
Commenting on expansion plans, he said the company is looking to further penetrate the US and China markets and explore new markets such as Taiwan and Japan within the next 12-34 months.
For the seven months ended April 30, 2015, Aemulus reported a 59.21% increase in net profit to RM4.71 million against RM2.96 million in the previous corresponding period.
Ng believes the company will continue to gain momentum in line with the growth in the electrical and electronics industry.