KUALA LUMPUR: 3REN Bhd, an automation solutions and engineering services provider, has unveiled its initial public offering (IPO) prospectus for its listing on the ACE Market of Bursa Malaysia Securities, slated for Nov 6.
In a statement, 3REN said the IPO will raise RM30.8 million through a public issue of 110 million new ordinary shares at an issue price of 28 sen per share, with 62.3% (RM19.2 million) of the proceeds allocated for business expansion and operational requirements.
Business expansion consists of setting up delivery centres (23.4%, RM7.2 million), research and development expenditure (16.6%, RM5.1 million), establishment of a Singapore office (9.7%, RM3 million) and working capital (12.7%, RM3.9 million).
Applications for the public issue portion of the IPO opened today and will close on Oct 23.
3REN executive director and CEO Koh Dim Kuan said that as they look towards the horizon, they see potential for growth. The global semiconductor industry is set to continue expanding well into the next decade, driven by emerging technologies such as artificial intelligence, 5G adoption, and the Internet of Things.
“This growth stimulus is further supported by the modernisation and transformation of manufacturing facilities towards Industry 4.0 and 5.0 technology. This enables smart factories and sustainable operations in addition to the increased outsourcing and relocation of manufacturing activities to Southeast Asia, which positions us favourably in capturing these unique opportunities,“ he said in his speech at the IPO prospectus launch today.
Regarding Budget 2025, Koh said the company hopes the government will address the talent shortage faced by the industry.
He mentioned that the government has announced the National Semiconductor Strategy and that the prime minister’s recent visit to Kulim has given them the opportunity to discuss talent issues.
“The talent issue has been highlighted very well to him, and he is aware of the challenges. So we believe that issue will be addressed according to the upcoming budget. We are very excited and looking forward to hearing the announcement,“ Koh said in a press conference at the event.
He noted that the government has laid out some incentive plans to support semiconductor design and development companies, such as launching the IC design hub and digital hub in Penang. “With the launch of the IC design hub and digital hub in Penang, the government also has laid out some of the incentive plans to support the companies involved in IC design development,“ he said.
As for the company’s expansion plans, Koh confirmed that they are targeting to establish a sales and marketing office in Singapore by the first half of 2025. “We are looking at the first half of 2025 to establish our Singapore office, and at this time, we are serving some customers in Singapore. Our main commitment is to get closer with them.”
