KUALA LUMPUR (Sept 14): Cosmos Technology International Bhd, which is scheduled to be listed on Bursa Malaysia's ACE Market on Oct 6 at 35 sen a share, said on Wednesday (Sept 14) that it plans to raise about RM22.44 million from its initial public offering (IPO), which involves a public issue of 64.13 million new shares.
According to Cosmos' prospectus which was filed with Bursa on Wednesday, Cosmos plans to use the estimated RM22.44 million gross proceeds to finance among others, the acquisition of a new building and purchase of new machineries.
Based on Cosmos' issue price of 35 sen a share and the company's enlarged number of outstanding shares at 256.5 million, the company will have a market capitalisation of about RM89.78 million upon listing, the water technology solutions provider said.
Substantial shareholders of Cosmos include Datuk Chong Toh Wee and Singapore-listed MSM International Ltd, which will own 40.5% and 27% stakes in Cosmos respectively after the IPO, according to Cosmos.
Chong is also the managing director of Cosmos, the company said.
Cosmos said investors' application for the company's shares starts on Wednesday and that the application's closing date is on Sept 22, 2022.
Mercury Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for Cosmos' IPO in conjunction with Cosmos' planned ACE Market listing, according to the prospectus.
Prior to the current IPO, Cosmos was initially listed on Bursa as a LEAP Market entity on March 9, 2020 at 28 sen.
"Subsequently, our company was delisted from the LEAP Market on Nov 10, 2021, pursuant to the withdrawal of the listing from the LEAP Market, to facilitate the listing on the ACE Market," said Cosmos, which had on Wednesday organised a press conference in conjunction with the prospectus launch for the company's proposed ACE Market listing.
In a statement issued to reporters covering the press conference here, Chong said the ACE Market listing will enable Cosmos to enhance its corporate image among its customers, suppliers, employees and other stakeholders, as well as provide funding for the expansion of Cosmos' business.
“With this IPO, we will be able to streamline and consolidate our operations and purchase new machineries to enable us to increase our manufacturing capacity and capability that can take us to even greater heights,” Chong said.
Cosmos' financial performance is expected to improve in 2022. Its prospectus shows that the company's net profit is expected to rise to RM5.79 million in its financial year ending 2022 (FY22), from RM5.59 million a year earlier.
Meanwhile, Cosmos is expected to record a higher revenue at RM49.12 million in FY22, versus RM33.72 million a year earlier.
"Our company presently does not have a fixed dividend policy. As our company is a holding company, our income and therefore, our ability to pay dividends is dependent upon the dividends we receive from our subsidiaries from time to time.
"The payment of dividends or other distributions by our subsidiaries will depend upon their operating results, level of cash, retained earnings and gearing, capital expenditure and working capital requirements, business expansion and investment plans, and other relevant factors," Cosmos said.