KUALA LUMPUR(Sept 25): Shares of Amlex Holdings Bhd rose as much as 0.5 sen or 3.33% to 15.5 sen at the opening bell today – as the electronic packaging and interconnect solution provider made its debut on Bursa Malaysia's LEAP Market.
A total of 30,000 shares were transacted.
Amlex shares ended the morning session up one sen or 6.67% at 16 sen, with 42,000 shares done.
Its co-founder and managing director Lim Say Soon told reporters after the listing ceremony here today that the company is facing capacity constraint, thus the listing exercise was mainly is to fund the its capacity expansion to generate more sales going forward.
Lim is upbeat about the industry outlook, as the company is "looking at more sales from overseas market and not stopping to strive for a greater growth."
To added, Lim forsees the China-US trade spat will present some good opportunities for the company to generate more business in the future.
"I think (China-US trade spat) will be well placed for us because we got more and more inquiries from the American companies and to some extent, China companies also come to talk to us," Lim said.
Lim said local sales made up approximately of 70% from its total sales for FY18, while the remaining is derived from overseas markets, key market including Phillipines, Thailand Singapore and the U.S.
For its financial year ended March 31, 2018 (FY18), net profit stood at RM2.15mil, on revenue of RM39.25 million.
On automotive industry front, Lim said the company is working with a U.S company to produce the LED lights for cars and the mass production had just started last month.
"We are looking at 10-15% increased in earnings by supplying the lead frame to the U.S company" said Lim, adding the company is supplying the 100,000 units lead frame per month for the US client.
The company is looking to increase the lead frame capacity to 400,000 units per months as the company is setting up and building a new high speed reel-to-reel electroplating plating and rack plating process machine after the listing.
Lim said the company had in 2017 embarked on a research and development initiative to develop production capabilities in optoelectronic lead frames for application in LED ligthing and daytime running lights for the automatiove industry.
"We believe that the demand for automative ligthing products will be positive given the regulations requiring the installation of daytime running lights for new passenger and commercial vehicles in the European Union, the United Kingdom and Canada, he added.
Under the proposed LEAP listing exercise, Amlex is looking to raise gross proceeds of RM6.03 million via a private placement to investors.
Of the total, the company plans to use RM3.2 million (53%) raised from the placement as capital expenditure (capex); RM1.03million(17.1%) for general working capital requirements; RM0.8milliom (13.3%) for R&D while the remaining RM1 million (16.6%) would be used for the listing expenses.
Amlex aims to be the leading electronic packaging and interconnect solution provider that the manufactures lead frames for ICs, as well as other electronic packaging and interconnect components.
The listing on the LEAP Market of Bursa will enable the company to raise its profile and expand its range of product and services and eletroplating capabilities.
According to Amlex’ information memorandum, the company had earlier undertaken an excluded issue of 40.22 million of new shares to selected sophisticated investors at 15sen each, in conjunction with the company's listing.