25% of SIC shares up for sale in IPO

Microchip manufacturer Silicon Craft Technology (SIC) has announced it will launch an IPO with 100 million shares or 25% of the company in late July, with the goal of becoming the world’s largest animal tag microchip producer.

The funds raised from the IPO will be used to diversify its microchip business and R&D activities on core technologies of microchips for car immobilisers, radio frequency identification (RFID) animal tags and access control systems.

The company said it expects to become the world’s top RFID producer for animals in four years.

Manop Dhamsirianunt, chief executive of SIC, said the company has 150 million baht in paid-up capital.

Finnex Advisory is the financial adviser for SIC’s listing and AIRA Securities is the lead underwriter.

Over the past three years, SIC earned over 300 million baht in revenue a year, 25-38% from microchips and immobilisers, animal tags at 33-42% and access control systems and interrogators at 27-32%.

In the first quarter of 2020, SIC generated revenue of 95.2 million baht, rising 30.7% from 72.9 million in the same period the year before. Net profits during the past three years stood at 38.7 million baht, 51.7 million and 24.5 million, respectively.

SIC’s first-quarter net profit was 15.6 million baht, jumping 552% from 2.39 million baht in the same period last year. The increase in revenue and net profit in the first quarter came from growing demand for animal identification tags.

“SIC will continue to expand the microchip business and set a goal to become No.1 in the RFID animal tags industry worldwide in the next four years,” Mr Manop said. “Together, we will further develop R&D activities on core technology and look for opportunities to jointly develop the innovations. SIC projects business growth at 20% per year.”