KUALA LUMPUR (June 10): Stratus Global Holdings Bhd, which engineers factory automation systems, has mandated UOB Kay Hian as underwriter for its Main Market listing.

Under the agreement, UOB Kay Hian will absorb any unsubscribed shares set aside for the Malaysian public portion and the allocation for eligible persons under the pink form allocation, Stratus Global said in a statement. No timeline for the initial public offering (IPO) was disclosed.

“Our IPO will support the next phase of our group’s expansion,” said Ryo Narisawa, chief executive of Stratus Global. “We believe Stratus Global is well-positioned to capture long-term opportunities within the semiconductor automation value chain.”

Narisawa, a 72-year-old Japanese, is also the company’s founder.

Based in Penang, Stratus Global specialises in automated material handling systems. The company mainly caters to the semiconductor industry where its systems transfer and store critical materials, such as silicon wafers, within cleanrooms or other controlled environments.

The proposed IPO will involve the public issue of new shares, according to its draft prospectus. There is no accompanying offer for sale of existing shares planned, meaning that existing shareholders are not cashing in their stake in the company.

Funds raised from the IPO will go towards expansion and operations. Stratus Global is in the midst of identifying a suitable property of at least two acres in Penang that will serve as an additional production area, research centre and warehouse, the company said.

The company has more than 44,000 sq ft of production floor space at its two factories in Bayan Lepas, which are currently operating near to full capacity.

Stratus Global is also planning to set up new sales and engineering support offices in Japan, Taiwan, Germany and the US in a bid to expand its international business that accounted for more than half of its revenue.

The rest of the proceeds from the IPO have been earmarked for research and development, working capital and defraying listing expenses. The company has no bank borrowings with nearly RM92 million in cash and bank balances and an unutilised bank facility of about RM26 million.

In the 12 months ended March 2025, the company made a net profit of RM66 million on the back of RM220 million in revenue.

UOB Kay Hian is the IPO’s principal adviser, underwriter and placement agent.