Amlex to list on Leap Market at 15 sen a share to raise RM6.03m

This article first appeared in The Edge Financial Daily, on September 4, 2018.
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KUALA LUMPUR: Amlex Holdings Bhd, which provides electronic packaging and interconnect solutions for the semiconductor and electronics industry, is seeking to list its shares on the Leap Market of Bursa Malaysia this month, from which it expects to raise RM6.03 million.

Of the proceeds raised from the private placement to sophisticated investors, Amlex plans to set aside 53% or RM3.2 million for capital expenditure; 17.1% or RM1.03 million for general working capital; and 13.3% or RM800,000 for research and development.

In a statement yesterday, its co-founder and managing director Lim Say Soon said Amlex plans to issue 40.2 million shares, representing 15% of the enlarged share capital, at an indicative price of 15 sen per share. At that price, the company will have a market capitalisation of RM40.2 million upon listing.

Currently, Say Soon has a 34.7% stake in Amlex, while the company’s co-founder and executive director Lim Say Peng has 24.3%. The remaining 41% stake is held by pre-Leap investors.

Once Amlex is listed on the local bourse, Say Soon and Say Peng’s stakes in the company will be diluted to 29.5% and 20.7% respectively, while pre-Leap investors’ stakes will be reduced to 34.9%.

Amlex’s customers include multinational companies in the semiconductor, consumer electronics, automotive, lighting, industrial electronics and medical industries.

For the financial year ended March 31, 2018, Amlex reported a net profit of RM2.2 million on the back of RM39.3 million revenue.

M&A Securities Sdn Bhd is the approved adviser, placement agent and continuing adviser for the placement and Leap Market listing exercise.