KUALA LUMPUR (Nov 6): Emits Bhd, which manufactures antennas for consumer and industrial devices, is accepting applications from investors at 16 sen per share for its ACE Market listing.
The initial public offering (IPO) is expected to raise RM15 million for the company and RM6 million for a group of five selling shareholders that include managing director Loy Boon Liang, according to its prospectus released on Friday.
Applications will close on Nov 19 and listing has been scheduled for Dec 1.
Emits is based in Penang, where it operates its main factory catering to customers in Malaysia, the US and Germany. The company also has an assembly line in Taiwan with a third-party contract manufacturer to assemble semi-finished land mobile radio antennas.
The company mainly provides manufacturing services for antennas, a key component for telecommunication devices such as walkie-talkies and WiFi routers, as well as in industrial devices such as 5G base station antennas and barcode scanners.
Emits is expected to have a market capitalisation of RM75 million based on the IPO price of 16 sen per share, which values the company at about 14 times its trailing earnings. Last year, the company made a net profit of RM5.2 million on revenue of RM11.12 million.
“Demand for high-performance antennas is expected to grow, driven by increasing needs for private mobile radio communication, as well as wireless connectivity from, among others, 5G and future 6G deployment,” Loy said in a statement.
Emits is setting aside 45% of the proceeds from public issue of new shares as working capital, including to buy inputs and to recruit contract workers. The company is also allocating 27% of the funds raised to buy new equipment and machineries. The rest will be used to cover listing expenses.
“We will continue to enhance our capabilities and to expand our suite of product offerings to tap on emerging opportunities,” Loy noted.
Apart from Loy, proceeds from the offer for sale of existing shares will also go to substantial investor Datuk Seri Goh Eng Hoe, executive director H'ng Chuen Yeou, chief technical officer Por Chee Seong and chief operating officer Ho Kooi Yong.
Mercury Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.