This article first appeared in The Edge Financial Daily, on April 6, 2016.

KUALA LUMPUR: Salutica Bhd, an original design manufacturer of electronic components, has obtained the approval of Bursa Malaysia Securities Bhd to proceed with its proposed initial public offering (IPO) on the ACE Market of the local bourse.

This means it has secured admission onto Bursa’s Official List, and the listing and quotation of its entire issued and paid-up share capital on the ACE Market of the local bourse, said Salutica.

Its proposed IPO will involve 101 million shares of 10 sen each, comprising a public issue of 78 million new shares and an offer for sale of 23 million existing shares. Proceeds of the IPO will be used for working capital (23.6%), future development of its in-house brands (26.9%), and estimated listing expenses (7%).

The company is in the midst of finalising a date to issue its prospectus.

The proposed listing will strengthen the company’s position as a vertically integrated consumer electronics manufacturer, and enhance Salutica’s corporate reputation as well as brand name recognition, said Salutica managing director and chief executive officer (CEO) James Lim.

“We are thankful to the capital market regulators for granting us the approval to list, and are mindful of the responsibilities that comes with being a publicly-traded company,” he said.

“It is a testament to the diligent efforts of the team here at Salutica that the company has come this far, and we are excited to continue to grow, moving forward,” he said, adding that it is optimistic about its growh prospects and remain committed to sustained value creation for its shareholders.

Salutica’s wholly-owned subsidiary, Salutica Allied Solutions Sdn Bhd, is involved in the design, development and manufacture of consumer electronic products such as Bluetooth-related devices and other electronic products for internationally well-known brands.

Based in Ipoh, Perak, the Salutica Group has about 800 employees at a manufacturing plant with a total built-up area of approximately 30,000 sq m, the statement read.

For its financial year ended June 30, 2015, the group recorded a net profit of RM27.41 million and RM192.52 million of revenue.