KUALA LUMPUR (June 6): Public Investment Bank (PublicInvest) has valued Main Market-bound Mi Equipment Holdings Bhd (Mi Equipment) at RM1.66.
Mi Equipment is principally involved in the in-house design, development, manufacture and sale of wafer level chip scale packaging (WLCSP) sorting machines with inspection and testing capabilities that meet the requirements of both local and international customers.
In a note today, PublicInvest said the group also provides maintenance services and technical support for these machines, as well as the sale of related spare parts and components.
The research house said the company’s principal markets are Malaysia, Southeast Asia, Northeast Asia and North Atlantic, having both integrated device manufacturers (IDMs) and outsourced semiconductor assembly and test companies (OSATs) as the group’s main customers.
“We derive a fair value of RM1.66 based on a 10.5x PE multiple to its FY2019F EPS of 15.8 sen.
“The IPO is expected to raise approximately RM190.9 million from the issuance of 134.4 million new shares. 73.4% of the proceeds will be utilised for business expansion through the construction of new factory cum office in Bayan Lepas and Batu Kawan, in order to boost the overall production capacity, accommodate new operation and ensure business continuity that are earmarked for long term future growth,” it said.