KUALA LUMPUR (Oct 19): Mi Technovation Bhd’s (KL:MI) unit has launched its Singapore listing that aims to raise over RM680 million for its next phase of global growth.
The initial public offering (IPO) of Mi Material Holding Ltd at S$1.80 per share will raise S$168.2 million for the semiconductor materials unit from public investors and cornerstone investors. Mi Technovation will pocket RM46.8 million from an offer for sale of its existing shares under the IPO.
Mi Material is scheduled to list on the Mainboard of Singapore Exchange on Oct 28, according to its official prospectus.
Formerly operating under the name Accurus Scientific, Mi Material manufactures solder spheres that connect chips to circuit boards. That business contributes about 45%-55% of Mi Technovation’s earnings.
Mi Material also has the backing of seven cornerstone investors — abrdn Asia Ltd, abrdn Malaysia Sdn Bhd, Amova Asset Management Asia Ltd, Areca Capital, Barings, Fullerton, and Manulife Investment Management.
Cornerstone investors, typically large institutional investors such as pension funds and insurers, commit to taking up a portion of the IPO shares before they are marketed to other retail and institutional investors. Their presence helps to build up confidence in the IPO.
Mi Material has earmarked the IPO proceeds to set up a research and demonstration centre in the US and another research facility in Singapore. The company will also refurbish and upgrade production equipment in Taiwan and expand its manufacturing facilities in Johor.
Upon listing, the company will have a market capitalisation of S$891 million. Earnings average annual growth rate was 96% over 2023-2025 while revenue grew 28% over the same period.
Oversea-Chinese Banking Corporation and CGS International Securities Singapore are acting as joint global coordinators, bookrunners, and underwriters for the IPO.