KUALA LUMPUR: The electrical and electronic (E&E) sector is expected to grow this year, driven by the rising demand for high-precision electronic components, said Chemlite Innovation Bhd.
Its chief operating officer and executive director, Heng Chee Khiang, said this is especially evident in the semiconductor and E&E industries, where surface finishing plays a critical role in enhancing durability, conductivity, and corrosion resistance.
“To meet evolving industrial needs, companies are investing in advanced coating automation and cleanroom capability to improve process efficiency and maintain stringent quality standards.
“With these favourable market trends, Chemlight Innovation is well-positioned to capitalise on industrial growth, leveraging our expanding operating capacity, automation technology, and research and development (R&D) efforts to strengthen our market presence and cater to the rising demand for high-value surface finishing treatment solutions,” he said.
Heng said this at a press conference yesterday after the company’s listing ceremony in Bursa.
At the opening gong, the engineering support services company debuted at 23 sen in the ACE Market, a discount of 2 sen, which was an 8% decrease from the initial public offering (IPO) price of 25 sen, with 22.04 million shares traded.
On the opening price, Heng said that although the price did not meet expectations, the company believed a range of external factors would improve the market performance.
“We remain focused on executing our strategy growth plans, such as expanding our production capability, further strengthening our market presence in the semiconductor and E&E sectors, and driving greatest operational efficiency.”
In a statement yesterday, Chemlite Innovation said it raised RM30 million from the IPO, where RM7.8 million would be utilised to purchase a parcel of industrial land to construct an additional operating facility in Penang Science Park North to expand its operational capabilities.
It said RM7 million would be used to set up two cleanrooms to provide cleanroom cleaning and packaging services to support customers who require contamination-free environments and RM1 million to invest in automation machinery and equipment to upgrade and strengthen its operational capabilities.
“Meanwhile, RM500,000 from the proceeds would be used to establish a dedicated R&D department to drive innovation in its surface finishing treatment services; RM5.5 million to repay bank borrowings to strengthen the company’s financial position; RM4.2 million for working capital to support ongoing operational growth, and RM4 million to cover costs related to the IPO process,” it said.
Chemlite Innovation CEO Chong Yuen Fong said that the company’s production capacity is divided into two markets, which are metal plating and non-metal plating, with production at over 80% capacity and 60 to 70%, respectively.
“With the new future plant (operating facility in Penang Science Park North), and an increase of four plating lines for metal and non-metal segments each, we are looking at 75% and 200% increase in terms of production capacity, respectively,” he said. – Bernama
