KUALA LUMPUR: Integrated engineering and automation solutions provider SFP Tech Holdings Bhd made its debut on the ACE Market of Bursa Malaysia Securities today, opening at 60 sen per share above its initial public offering (IPO) price of 30 sen per share, chalking up a 30 sen or 100% premium.
The Penang-based investment holdings company is primarily engage in the provision of management services. Through its subsidiaries, SFP Tech is involved in the provision of sheet metal fabrication, CNC machining and mechanical assembly services as well as the provision of automation equipment solution.
The group is raising RM62.23 million from the IPO exercise. The IPO proceeds will primarily be utilised for purchase of new machinery and equipment (RM24.5 million or 39.37%), for construction of Manufacturing Plant 3 (RM15 million or 24.1%), for repayment of bank borrowings (RM10 million or 16.07%), for working capital expenditure (RM5.13 million or 8.25%), for the setup of a design and development (D&D) centre (RM4.6 million and 7.39%) and for estimated listing expenses (RM3 million or 4.82%).
The construction of its Manufacturing Plant 3 is expected to be completed by the end of Q2’22 and fully operational by Q4’22.
CEO Dr Chang Chee Jia said the public portion of its shares were oversubscribed by 41.61 times. With this strong statement from the public, the group is motivated to strive for better achievements in the coming years.
“Now that SFP Tech is listed on Bursa, we have set the group’s ambitious targets and defined a clear roadmap that we believe will ensure our success in the years to come in order to build a strong investment climate for market participants,” he said during the listing ceremony.
Meanwhile, its head of corporate strategy and communication Ivan Yap Boon Tiong said the group currently does not have a fixed dividend policy but it may be in the works if profit sustains.
Moving forward, the group plans on venturing into the semiconductor back-end inspection industry by manufacturing vision inspection equipment handler platforms embedded with camera imaging and electronics system. In terms of the global semiconductor shortage, Yap said it is not a concern for the group yet because it is under control.
“When those issues ease, we will see better situation but right now for us, it’s pretty much in control,” he told reporters during the press conference of its listing ceremony.
Public Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for SFP Tech’s IPO exercise.
