MMIS seeks Aug listing on LEAP market at 10 sen per share

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KUALA LUMPUR (June 28): MMIS Bhd is seeking to list on the Leading Entrepreneur Accelerator Platform (LEAP) Market of Bursa Malaysia in August by issuing 50 million new shares at 10 sen per share, it announced in a filing on the trading bourse.

The new shares represent 10% of the enlarged share capital of the precision engineering parts manufacturer.

The company plans to raise up to RM5 million, of which RM2 million will be used for capital expenditure, RM2 million for working capital; while the remainder will be used to pay listing-related expenses.

The company has a unit engaged in the manufacturing, marketing and sale of precision engineering parts for the semiconductor industry.

In a separate statement, MMIS managing director Loh Chin Soon said the company’s production floor is currently fully utilised while its production capacity has an average utilisation rate of around 73%.

MMIS plans to build a new facility with a built-up area of 27,000 sq ft which is earmarked for completion by mid-2020 and intends to combine both the old and new production facilities, which will increase its production space from 32,400 sq ft to 55,000 sq ft by the end of 2020.

“We intend to leverage on our capabilities, technological know-how and proven track record to further expand our range of offerings to our existing customers, and to acquire new customers via targeted sales and marketing activities. Since we have existing customers in the medical and engineering industries, we believe that we can expand our product and service offerings in these new market segments,” he added.

Loh said the precision engineering industry in Malaysia has grown from RM4 billion in 2010 to RM7.1 billion at a compound annual growth rate of 7.4%.

“The growth of the precision engineered industry in Malaysia will be supported by demand for precision engineered parts by end user markets such as the manufacturing sector and the global market for the production of electronic products.”

For the financial year ended June 30 2018 (FY2018), MMIS’ net profit was RM4.11 million, more than triple the RM1.3 million posted a year ago. Meanwhile, its revenue rose 82% to RM17.02 million from RM9.34 million in the previous financial year.