EMS provider Aurelius Technologies has launched its prospectus for its planned listing on the Main Market of Bursa Malaysia Securities Bhd.
Electronics manufacturing services (EMS) provider Aurelius Technologies Bhd (ATech) has launched its prospectus for its planned listing on the Main Market of Bursa Malaysia Securities Bhd.
ATech offers a comprehensive range of EMS to multinational corporations across 11 countries covering Asia Pacific, Americas and Europe. These services include engineering support services, prototyping, board assembly, mechanical assembly and test for communications devices, Internet of Things (IoT) devices, electronic devices and semiconductor component modules used by the telecommunications, transportation, power management and IoT industries.
With a long track record of 28 years, ATech has built a business based on long-term client partnerships. All top five customers are foreign companies or subsidiaries of US public-listed companies.
The IPO involves up to 103.87 million ordinary shares comprising public issue of 77.01 million shares and an offer for sale of up to 26.86 million shares. The institutional offering of up to 80.96 million shares represents 22.60% of the enlarged issued shares. The retail offering of up to 22.91 million shares, representing 6.40% of the enlarged issued shares, will be offered at a retail price of RM1.36 per share.
The company is expected to raise RM104.73 million in proceeds from the IPO, of which RM40.0 million would be used to acquire new machinery and equipment, RM29.52 million for repayment of borrowings, RM28.13 million for working capital and RM7.08 million for listing expenses.
“Our IPO will enable us to speed up the execution of our plan to grow, strengthen and leverage our core competency of providing EMS for industrial electronics products as well as continuing our expansion into the production of IoT modules that we started offering in early 2020,” said Executive Director and Chief Executive Officer of ATech, Lee Chong Yeow. “We are also expanding our production facilities with the construction of a new factory adjacent to our existing plant in Kulim Hi-Tech Park. The new factory will enable us to add floor space to grow the semiconductor component modules production, to cater for Lithium-Ion battery pack production and our existing EMS operations. We will have a total of 15 SMT lines by the end of 2023 from both the new factory and additions to the current factory. These new SMT lines will increase our annual capacity by 198.7% for the financial year ending (FYE) 31 January 2024 from FYE21 to meet the expected increase in demand from our customers.”
For FYE21, communications and IoT products contributed 89.5% to the company’s revenue; electronic devices contributed 9.4%; and semiconductor components contributed less than 1%. The top three countries by revenue contribution for FYE19 to FYE21 were the United States, Malaysia, and Singapore.
Maybank Investment Bank Berhad, which is part of Maybank Kim Eng Group, is the Principal Adviser, Sole Bookrunner and Sole Underwriter.
“As a direct IoT proxy, ATech is well-positioned for sustainable, accelerated growth as the demand for IoT terminal connections is expected to hit 23.7 billion by 2026. Our conversations with investors indicate that ATech is one of the most anticipated small cap IPOs in Malaysia this year,” Ami Moris, Chief Executive Officer, Maybank Kim Eng Group, said. “We are also encouraged to see that ATech is actively reducing its carbon footprint to become a best-in-class green EMS player, and is prioritizing local communities through upskilling and employment opportunities. We look forward to journeying with ATech as a trusted business partner.”