KUALA LUMPUR (Oct 7): SFP Tech Holdings Bhd, an engineering supporting service provider of sheet metal fabrication, computer numerical control machining and mechanical assembly services with automation equipment solutions, is seeking a listing on the ACE Market of Bursa Malaysia.  

This is to raise funds for the purchase of new machinery and equipment, construction of a proposed three-storey factory and warehouse with a three-storey office building (Manufacturing Plant 3) in Penang, repayment of bank borrowings, and for working capital expenditure.

According to its initial public offering (IPO) prospectus exposure posted on the Securities Commission Malaysia's website, 207.44 million new shares will be issued under the public issue.

Of these, 40 million shares will be made available for application by the Malaysian public.

Another 24 million new shares  will be made available for application by eligible directors, employees and persons who have contributed to the success of SFP Tech.

In addition, 43.44 million new shares will be made available by way of private placement to selected investors, and another 100 million new shares by way of private placement to Bumiputera investors approved by the Ministry of International Trade and Industry.

For the financial year ended 2020 (FY20), SFP Tech posted higher revenue of RM41.1 million compared with RM30.31 million in FY19, and RM27.62 million in FY18. The group's revenue is mainly supported by contributions from the local market, in addition to foreign markets such as the USA and Singapore.

SFP Tech said it plans to venture into the semiconductor back-end inspection industry by manufacturing vision inspection equipment handler platforms embedded with camera imaging and electronics systems.

The group also intends to expand its production capacity and capabilities via the construction of Manufacturing Plant 3 and purchase of new machinery, which would enable it to take on additional business opportunities.

“Upon completion of Manufacturing Plant 3, we will have additional space to increase our manufacturing capacity and take on larger and more orders. Moving forward, we intend to diversify our revenue stream by expanding into the vision inspection industry,” the group said.

Public Investment Bank Bhd is the principal adviser for the IPO.