KUALA LUMPUR (Nov 20): SkyeChip Bhd has filed for a listing on Bursa Malaysia’s Main Market to raise fresh funds for research and expansion of the chip design firm.
The proposed initial public offering (IPO) involves only public issue of new shares at a price to be determined later, according to the draft prospectus. There is no sale of existing shares, meaning that its current shareholders are not cashing out their stake in the Penang-based company.
“We will leverage our expertise…to capitalise on both existing and new opportunities in the IC design and semiconductor industry,” SkyeChip said.
SkyeChip is mainly involved in integrated circuit (IC) design, specialising in silicon intellectual property, which could be licensed to its customers to be integrated into their chips. The company also designs and develops custom semiconductor chips.
The IPO comes at a time when Malaysia is seeking to move a key industry up the value chain for economic growth. Abroad, there is a major push for ‘semiconductor sovereignty’ in an industry fraught with geopolitical and trade tensions as well as a fragile supply chain.
Such risks are spelled out in SkyeChip’s draft prospectus. The company cautioned that tariffs and sanctions on certain high-technology products, services, and equipment by US and some European nations could affect the sale of its advanced IC designs to China and other affected countries.
“In the event such restrictions were to be imposed, this could adversely impact our business operations and financial performance,” SkyeChip said. Sales to China and Taiwan together accounted for nearly 90% of the company's revenue in the latest financial year ended March 31, 2025 (FY2025).
The company has yet to encounter any export controls, trade sanctions and trade restrictions while none of its clients have been sanctioned by the US so far. Revenue at SkyeChip surged 47% to RM119.5 million in FY2025 while net profit was a little under RM37 million.
SkyeChip is planning use 60% of the IPO proceeds for research and development. The company is also setting aside about 16% of the funds to expand its facilities and another 10% to acquire design software tools.
The rest has been earmarked for working capital and to defray listing expenses.
The company is currently headed by Datuk Fong Swee Kiang, an engineer with over 35 years of experience in the semiconductor industry and an alumnus of Intel Corp and Broadcom Inc. Teh Chee Hak, his former colleague at Intel and Broadcom, is the chief technology officer.
They founded SkyeChip in 2020.
Maybank Investment Bank is the IPO’s principal adviser, lead bookrunner, joint bookrunner, managing underwriter and joint underwriter. CIMB Investment Bank is a joint bookrunner and joint underwriter.