Cape EMS Makes Strong Debut on Malaysian Market
JOHOR, MALAYSIA – Malaysian EMS provider Cape EMS ended its debut in the Main Market of Bursa at RM1.50 ($0.33), representing a premium of 67% over its IPO price of 90 sen ($0.002).
The share price opened at RM1.42 ($0.32), a 57.8% premium over its offer price with an opening volume of 42 million shares. It was the most actively traded stock on Bursa Malaysia. Prior to this, Cape EMS’ 46.2 million IPO shares made available for application by the Malaysian public had an overall oversubscription rate of 17.8 times.
The public issue totaled 173 million shares, which raised RM155.7 million ($34.6 million), while its retail offering was 54.2 million shares.
From the proceeds, Cape EMS allocated RM62.8 million ($14 million), or 40.3%, for setting up a new cleanroom facility and purchase of new automated production lines for EMS operations. Another RM53.1 million ($11.8 million), or 34.1% is reserved for the construction of a new warehouse and the installation of automated storage facilities.
The company has also allocated RM20.5 million (4.6 million), or 13.2% for working capital, RM11 million ($2.4 million), or 7% for estimated listing expenses, RM4.6 million $1 million), or 3% for the purchase of machinery and equipment for die-cast manufacturing related services, and RM3.7 million ($822,000), or 2.4% for the installation of energy saving cooling systems.
"Moving forward, we will continue to bring our company to greater heights. With the additional production capacity that we intend to purchase using our IPO proceeds, we believe that we are on track to expedite our growth in the electronics manufacturing services industry to cater to the expected increase in demand for EMS services, driven by the projected global growth of the semiconductor and electronics market," MD/CEO Tee Kim Chin said in a statement. "With that said, this listing comes at an opportune time, as we intend to capitalise on our listing status to further fuel our growth trajectory going forward."
