KUALA LUMPUR: Aurelius Technologies Bhd en route to a listing on the Main Market of Bursa Malaysia on December 16, is raising RM104.73 million from its initial public offering (IPO) to partly fund its regional business expansion.
Aurelius is a provider of electronics manufacturing services (EMS) for industrial electronic products.
It offers a comprehensive range of EMS to multinational corporations across 11 countries covering Asia Pacific, Americas and Europe.
Executive director and group chief executive officer Lee Chong Yeow said part of the IPO involved a public issue of 77.01 million new shares at an offer price of RM1.36 each, which was expected to raise the company's market capitalisation to RM487.12 million.
Lee said from the expected RM104.73 million proceeds, RM40.0 million would be used to acquire new machinery and equipment, RM29.52 million for repayment of borrowings, RM28.13 million for working capital and RM7.08 million for listing expenses.
"Our IPO will enable us to speed up the execution of our plan to grow, strengthen and leverage our core competency of providing EMS for industrial electronics products.
"This exercise will also continue our expansion into the production of semiconductor component modules that we started offering in early 2020," he said at the launch of the company's listing prospectus today.
The IPO involves up to 103.87 million ordinary shares comprising a public issue of 77.01 million shares and an offer for sale of up to 26.86 million shares.
The institutional offering of up to 80.96 million shares represents 22.60 per cent of the enlarged issued shares.
The retail offering of up to 22.91 million shares, representing 6.40 per cent of the enlarged issued shares, will be offered at a retail price of RM1.36 per share.
Meanwhile, Lee said Aurelius was expanding its production facilities with the construction of a new factory adjacent to its existing plant in Kulim Hi-Tech Park.
Lee said the new factory will enable Aurelius to add floor space to grow the semiconductor module's production and will also cater for lithium-Ion battery pack production and other EMS operations.
"We will have a total 15 SMT lines by the end of 2023 from both the new factory and additions to the current factory.
"These new SMT lines will increase our annual capacity by 198.7 per cent for the financial year ending January 31, 2024 (FY24) from FY21 and to meet the expected increase in demand from customers," he said.
For FY21, communications and IoT products contributed 89.5 per cent to Aurelius' revenue, electronic devices contributed 9.4 per cent and semiconductor components contributed less than one per cent.
The top three countries by revenue contribution for FY19 to FY21 were the United States, Malaysia and Singapore, which collectively accounted for 93.6 per cent, 92.7 per cent, and 89.3 per cent of the total revenue.
As at November 1 this year, Aurelius unbilled order book stood at RM482.7 million. The orders will be fulfilled in overtime in the next 24 months.
