PETALING JAYA: ACE Market-bound Chemlite Innovation Bhd is scaling up its operational capabilities to strengthen its presence in the surface engineering sector, particularly in the semiconductor and electrical & electronics (E&E) industries.
As part of its strategic expansion, the company is investing in a new facility, advanced automation technologies, and an expanded service portfolio to meet increasing industry demands.
“A key component of this initiative is the construction of an additional operating facility dedicated to anodising and metal plating services (RM7.8 million). This facility, spanning at least 100,000 sq ft on a newly acquired 3-acre industrial land, will feature four fully automated anodising lines and four semi-automated metal plating lines.
“The expansion will help Chemlite increase production, work more efficiently, and serve current and new customers better.
“The acquisition of the land, valued at approximately RM9.75 million, is expected to be completed by the second quarter of 2025, with facility construction slated for completion in the fourth quarter of 2026,” Chemlite said in its prospectus filed in Bursa Malaysia yesterday.
To further broaden its service offerings, the company is introducing cleanroom-based cleaning and packaging services (RM7 million). These controlled environments will minimise contamination in treated metal products, reducing defects and improving product longevity. This new service is set to launch in the third quarter of 2025, attracting new customers while adding value to existing ones.
Additionally, Chemlite is investing in advanced automation technologies including masking and dispensing robotic arms, to streamline its pre-production processes (RM1 million). These innovations will enhance precision, increase throughput, and reduce cycle times, further optimising the company’s operations.
Chemlite is seeking to raise RM30 million from its initial public offering (IPO) listing on the Ace Market of Bursa Malaysia Securities Bhd. The IPO exercise will comprise a public issue of 120 million new shares and an offer for sale of 60 million existing shares.
“A total of 30 million shares will be made available for application by the Malaysian public and 21 million shares will be reserved for application by eligible directors and employees, as well as persons who have contributed to its success.
“Additionally, 15 million issue shares and 60 million offer shares will be made available by private placement to bumiputra investors approved by Investment, Trade and Industry Ministry,” it said.
Chemlite added that the IPO proceeds will enable the company to enhance and expand its facilities, invest in automation and drive R&D initiatives.
“We have allocated RM16.3 million (54.34%) of the total proceeds to be utilised for the group’s business expansion, RM5.5 million (18.33%) for repayment of bank borrowings, RM4.2 million (14%) for working capital and the remaining RM4 million for listing expenses,” Chemlite said.
Upon listing on the ACE Market on March 26, Chemlite will have a market capitalisation of RM150 million.
