KUALA LUMPUR (Aug 26): Mi Technovation Bhd (KL:MI) said on Wednesday the proposed listing of its semiconductor materials unit has secured approval from the Singapore Exchange.

The conditional eligibility-to-list for the unit Mi Material Holding Ltd is valid for three months from Aug 25, the company said in an exchange filing on Wednesday. The listing is still subject to customary conditions, Mi Technovation noted.

The approval marks a step forward for the listing of the unit that formerly operates under the name Accurus Scientific. Mi Material manufactures solder spheres that connect chips to the circuit boards, a business that contributes about 45%-55% to Mi Technovation’s earnings.

The proposed initial public offering (IPO) on the Main Board of Singapore Exchange will involve new and existing shares to investors, while Mi Technovation is expected to retain a 73% stake in the unit upon listing targeted by the end of 2026.

Mi Material is planning to utilise proceeds raised from the IPO 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.

On its part, Mi Technovation said it has earmarked proceeds from the sale of its shares in the unit to expand its vehicle technologies business, including the acquisition and establishment of a new headquarters, production facility, laboratory, as well as for working capital purposes.

Oversea-Chinese Banking Corporation Ltd (OCBC) has been hired as the sponsor, manager, global coordinator and bookrunner.