KUALA LUMPUR (July 15): Semico Capital Bhd, which supplies video game arcade machines, has filed for ACE Market listing to raise funds for operations and expansion of its toys and collectables business.
The company, led by a husband-and-wife team, distributes toys from 53 brands — including Pop Mart known for its Labubu plushies — and now plans to expand its inventory of popular and trending toys and collectibles, while diversifying its product range, according to its draft prospectus.
“This is part of our expansion plan to maintain and secure new customers and to ensure we continue providing popular and trending items in a growing market,” Semico said.
Based in Kuala Lumpur, Semico ventured into the trading of video game arcade and amusement machines some two decades ago. The company now also operates one family entertainment centre located in The Mines.
The toys-and-collectibles division, meanwhile, involves wholesale and distributions to specialised convenience stores, hobbyist stores and toy stores that are involved in retailing toys and collectables, or to arcade operators as game prizes.
For its financial year ended June 30, 2024, the company made a net profit of RM4.7 million on the back of RM22.1 million in revenue, with its family entertainment business accounting for 45% of topline, while the toys-and collectibles division provided 55%.
Apart from purchasing toys, Semico is also planning to buy some 188 arcade and amusement machines to grow its revenue-sharing and rental model business.
“As our existing customers continue to expand their business by increasing the number of their family entertainment centres coupled with enquiries from potential customers, these create opportunities for us to supply more machines and broaden our market reach,” Semico added.
The company is also setting aside some of the proceeds from the initial public offering (IPO) to replace 55 of its existing arcade and amusement machines, such as claw machines and racing games.
The company has 603 arcade and amusement machines, of which more than 100 are over five years old and fully depreciated, Semico noted.
The proposed IPO involves a public issue of 92.67 million new shares that will raise funds for Semico and an offer for sale of 18 million existing shares, of which proceeds will accrue entirely to a vehicle controlled by chief executive officer Tai Lee Chuen and his wife Ang Sew Fong.
Ang is also the executive director and head of human resources and administration at Semico.
Affin Hwang Investment Bank is the IPO’s principal adviser, sponsor, sole placement agent and sole underwriter.