KUALA LUMPUR (June 24): Mi Technovation Bhd (KL:MI) is seeking to unlock the value of its semiconductor materials business through a proposed spin-off listing on the Singapore Exchange. The group on Wednesday submitted an application for the initial public offering (IPO) of Mi Material Holding Pte Ltd on the exchange's Mainboard.

The proposed listing will see Mi Material, which will house Mi Technovation's semiconductor materials operations in Taiwan, Singapore, China and Malaysia, offer new and existing shares to investors, while Mi Technovation is expected to retain a 72.61% stake in the unit upon completion of the exercise.

In a filing with Bursa Malaysia, Mi Technovation said Mi Material submitted the listing application through Oversea-Chinese Banking Corporation Ltd, which is acting as the Singapore issue manager for the listing.

The exercise is targeted for completion by the fourth quarter of 2026, subject to regulatory and shareholder approvals.

Mi Technovation said the spin-off would enable the group to unlock and crystallise the value of its semiconductor materials business through a transparent market-driven valuation, while providing shareholders with an opportunity to participate directly in the unit's growth via an entitlement offering.

It added that the exercise would allow a clearer separation of its business units, enabling management teams to focus on their respective growth opportunities and improve operational efficiency.

As part of the exercise, Mi Technovation is undertaking an internal reorganisation to place its semiconductor materials assets under Mi Material.

The restructuring involves the transfer of its wholly-owned stakes in Taiwan-based Accurus Scientific Co Ltd and Singapore-based Mi Material (S) Pte Ltd to Mi Material for a total consideration of RM358.99 million, to be satisfied through the issuance of 399.99 million new shares in Mi Material.

The IPO is expected to comprise an international placement, a public offer in Singapore, a cornerstone investor tranche and an entitlement allocation for Mi Technovation shareholders. The final offering size and pricing have yet to be determined.

For illustrative purposes, Mi Technovation said an offering of up to 135.25 million shares would result in Mi Material having an enlarged share capital of 493.75 million shares, with the parent company retaining a controlling stake of 72.61%.

Mi Technovation said proceeds from the sale of vendor shares would be used to expand its vehicle technologies business, including the acquisition and establishment of a new headquarters, production facility, office and research and development laboratory, as well as for working capital purposes.

Meanwhile, Mi Material plans to utilise proceeds raised from the issuance of new shares to expand production facilities in Malaysia, establish a research and development laboratory in Singapore, refurbish and upgrade production facilities in Taiwan, and support working capital requirements.

As of the financial year ended Dec 31, 2025, the semiconductor materials business contributed 45.7% of Mi Technovation's net profit and 44.6% of its revenue. The division posted a net profit of RM42.84 million on revenue of RM279.68 million, compared with the group's total net profit of RM93.78 million and revenue of RM625 million.

Shares in Mi Technovation closed eight sen or 1.8% higher at RM4.60 on Wednesday, giving the group a market capitalisation of RM4.14 billion. Over the past one year, the stock has gained 144.7%.