KUALA LUMPUR (July 14): TA Securities believes Oxford Innotech Bhd is fairly valued at its initial public offering (IPO) price of 29 sen per share ahead of its ACE Market listing on Bursa Malaysia on July 29.

Based in Penang, Oxford Innotech makes precision components for the semiconductor, electronics, automotive, and modular building industries.

TA Securities said the 29 sen share price is based on Oxford Innotech trading at 13.1 times its past earnings and 14 times its expected earnings for 2026. This takes into account the company’s strong track record, wide range of products and services, and experienced management team.

The firm, founded in 2002, Oxford Innotech, has a strong track record of delivering high-quality engineering solutions to both local and international clients.

The company offers a one-stop service with a wide range of products, including design, metal fabrication, machining, plastic injection moulding, product assembly, and automation and robotics solutions.

It is led by managing director Ng Thean Gin, who has 27 years of industry experience, along with a skilled management team experienced in operations, finance, and marketing.

That said, the firm estimates the group will register a 15.4% drop in core profit year-on-year to RM13.3 million in FY2025, mainly due to strong earnings last year from major modular building projects. 

“However, we believe the group will recover in the subsequent years, with projected earnings growth of 9.5% and 14.3% to RM14.6 million and RM16.7 million for financial year 2026 and financial year 2027, respectively, supported by its business expansion plan and a healthy industry outlook,” the firm said.

These projections are based on:

Oxford Innotech’s IPO aims to raise up to RM56.1 million. Of this, RM41.6 million will come from new shares issued to the public, while the remaining amount will go to existing shareholders selling their shares.

Oxford Innotech plans to allocate RM23.1 million for the construction of new factory space in Penang, and RM11.2 million for the purchase or refinancing of new machinery.

It also plans to add another 39,392 sq ft to its current 85,782 sq ft of manufacturing space by the third quarter of 2025. Proceeds from the IPO have been earmarked to fund the development of a further 67,722 sq ft of manufacturing space, slated for completion in 2027. Once completed, the company’s total manufacturing area will more than double to 192,000 sq ft.