Monday 22 Apr 2024
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KUALA LUMPUR (Oct 17): Newly ACE Market-listed Minox International Group Bhd opened at 31.5 sen — a 26% premium to its initial public offering (IPO) price of 25 sen.

At 31.5 sen, this translates to a market capitalisation of RM113.4 million for the stainless steel sanitary valves, tubes and fittings distributor. 

Minox, through its subsidiaries, is principally involved in the distribution of stainless steel sanitary valves, tubes and fittings, installation components and equipment, rubber hoses under the “Minox” brand and other related products.

Among its notable industrial end-customers are Malaysia Milk Sdn Bhd, Unilever Foods (M) Sdn Bhd, Johnson & Johnson (M) Sdn Bhd, Dindings Poultry Processing Sdn Bhd, Chuan Sin Sdn Bhd (a wholly-owned subsidiary of Spritzer Bhd), Campbell Cheong Chan (Malaysia) Sdn Bhd, Duopharma (M) Sdn Bhd, Thai Beverage Public Co Ltd and Nestlé Manufacturing (Malaysia) Sdn Bhd.

Minox managing director Cheong Chee Son said the group will introduce new vacuum fittings and valves tailored for semiconductor production lines and construct a fourth warehouse in Puchong to cater for higher sales volume.

“Beyond local shore, we are setting up a new warehouse in Singapore to store our new vacuum fittings and valves for the semiconductor industry as well as to store inventories that cater for customers in Singapore and abroad,” he added.

The group raised RM22.5 million from the IPO, with 57.9% of the proceeds to be utilised towards business expansion.

It has allocated RM4 million (17.8%) for product development and deployment, RM4 million (17.8%) for the construction of Warehouse 4 in Puchong, Selangor and RM5 million (22.3%) for the setting up of a new warehouse in Singapore.

The group will utilise RM4.5 million to repay bank borrowings, followed by RM1.6 million for working capital, while the remaining RM3.4 million will be used to cover estimated listing expenses.

For the six months ended June 30, 2023, Minox registered a net profit of RM4 million on the back of RM26.1 million revenue. About 92.7% of the group’s revenue was contributed by the sales of food and beverages industry.

Of the group’s total revenue, domestic sales contributed 26.2% while export sales contributed 73.8%.

Indonesia is the largest export market at 41.1%, followed by Singapore (20.8%), Thailand (7.5%) and others (4.4%).

Edited BySurin Murugiah
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