KUALA LUMPUR (March 11): Contract manufacturer Emits Bhd plans to list on the ACE Market to raise funds to raise working capital and purchase new equipment as part of its expansion plans.

Apart from a positive industry outlook, Emits will require input materials and contract staff to work on a project to manufacture 5G base station antennas which the company expects to secure by June this year, according to its draft prospectus.

“We anticipate that our working capital requirements will increase as our business is poised to grow,” Emits said.

Emits is based in Penang, where it operates its main factory catering to customers in Malaysia, the US and Germany. The company also has an assembly line in Taiwan with a third-party contract manufacturer to assemble semi-finished land mobile radio antennas.

The company mainly provides manufacturing services for antennas, a key component for telecommunication devices such as walkie-talkies and WiFi routers, as well as in industrial devices such as 5G base station antennas and barcode scanners.

Last year, Emits reported a net profit of RM5.2 million on revenue of RM39.65 million.

The proposed initial public offering (IPO) involves a public issue of new shares and an offer for sale of existing shares. All in all, the IPO will offer up to 28% in Emits at a price to be determined later.

Datuk Seri Goh Eng Hoe, a major shareholder without a board seat or management role; managing director Loy Boon Liang; executive director H’ng Chuen Yeou; and chief technical officer Por Chee Seong will pocket the proceeds from the offer for sale.

Mercury Securities is acting as the principal adviser, sponsor, underwriter and placement agent for the IPO.