KUALA LUMPUR (April 29): Semiconductor design firm SkyeChip Bhd is looking to raise up to RM352 million from its listing on the Main Market of Bursa Malaysia. 

The initial public offering (IPO), indicatively priced at 88 sen per share, consists entirely of public issue of new shares, according to its prospectus launched on Wednesday. There is no accompanying offer for sale of existing shares, meaning current shareholders are not cashing out.

Applications for the retail offering will close on May 6, while applications for the institutional offering will end on May 7. The final price will be the lower of the retail price or the institutional price following bookbuilding.

SkyeChip is scheduled to list on May 20.

The Penang-based company is mainly involved in integrated circuit 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 the semiconductor industry up the value chain and towards the more lucrative front-end from the lower-margin back-end services. 

“We are proud to be a product of belief and support, and remain committed to contributing to Malaysia's national semiconductor ambition,” said chief executive officer Datuk Fong Swee Kiang during his speech at the launch of its prospectus.

Deputy Minister of Investment, Trade and Industry Sim Tze Tzin, who gave a speech at the prospectus launch, said he believes SkyeChip can reach heights of being Malaysia’s equivalent of American tech giant Broadcom Inc.

More than 60% of the IPO proceeds, or RM211.5 million, will go towards research and development. The company also set aside about 16% of funds to expand its operational facilities along with computing infrastructure.

The remainder of the funds will accrue towards licensing and development tools, working capital, and listing-related expenses.

Maybank Investment Bank is the principal adviser, lead bookrunner, managing underwriter, and joint underwriter for the IPO, while CIMB Investment Bank is also the joint underwriter and joint bookrunner for the exercise.

Read also:
SkyeChip granted conditional approval for Arm’s design tokens, says CEO
SkyeChip secures Maybank IB and CIMB IB to underwrite Main Market listing
SkyeChip files for Main Market listing to raise funds for research, expansion 
Tech: SkyeChip takes cue from Broadcom’s focused, high-stakes model