KUALA LUMPUR: Precision engineering parts manufacturer MMIS Bhd made its debut on the Leading Entrepreneur Accelerator Platform (LEAP) Market of Bursa Malaysia Securities Bhd this morning with an opening price of 12 sen, a 20% or 2 sen premium over its IPO price of 10 sen.
Its first traded volume was 2 million shares.
MMIS placed out 50 million new shares representing 10% of the company’s enlarged share capital to selected sophisticated investors at 10 sen per share, raising a total of RM5 million. Upon its debut, MMIS will have a market capitalisation of RM50 million.
The company manufactures precision engineering parts and provides services for multinational customers in the semiconductor industry value chain and also cater for a wide range of industries, including but not limited to medical, engineering, electronic packaging, oil and gas, power generation and automotive.
At the listing ceremony, MMIS managing director Loh Chin Soon said the precision engineering industry in Malaysia has shown promising growth prospects.
“With our strong portfolio of customers and assets, we are confident that MMIS will be well-positioned to ride on the industry’s growth in the long-term,” he said in a statement.
He said presently the average utilisation rate of its computer numerical control (CNC) machines is at 73% while its production space is fully utilised.
“In anticipation of increasing orders, we will need more production space. As such, we plan to use part of the proceeds raised from the listing and bank borrowings to enlarge our current facility and increase floor production with our recent acquisition of a 4,252 sqm (1.05 acre) parcel of land beside our existing production facility to increase floor production space from 32,400 sq ft to 66,600 sq ft by end of 2020,” he added.
MMIS’ machinery is able to undertake a wide range of specifications that allow them to expand its offerings to future and existing customers, as well as to penetrate various industries to acquire new customers.
“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 listing will enhance MMIS’s vision of becoming the leading manufacturer and total solutions provider in precision metal fabrication in Malaysia and in the Asean region.
source https://www.thesundaily.my/business/mmis-debuts-on-leap-market-FY1346007
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