Amlex to list on LEAP Market

KUALA LUMPUR: Amlex Holdings Bhd plans to list on the LEAP Market of Bursa Malaysia Securities Bhd this month and raise gross proceeds of RM6.03 million.
Amlex co-founder and managing director Lim Say Soon said the fund raising and proposed listing involve a placement of 40.2 million shares in Amlex, which represent 15% of the enlarged share capital, at an indicative price of 15 sen per share.
“Upon listing, the market capitalisation of Amlex will be RM40.2 million,” he said in a statement.
Amlex plans to utilise RM3.2 million (53%) raised from the placement as capital expenditure to set up and build a new in-house designed rack plating machine and an additional reel-to-reel electroplating plating machine; testing and quality assurance equipment, as well as facility upgrade.
It will further utilise RM1.03 million (17.1%) for general working capital requirements; RM0.8 million (13.3%) for research and development (R&D) while the remaining RM1 million (16.6%) would be used for the listing expenses.
Amlex aims to be the leading electronic packaging and interconnect solution provider that manufactures lead frames for integrated circuits, as well as other electronic packaging and interconnect components.
Moving forward, Amlex’s future plans and business strategies will centre on broadening the company’s electronic packaging and interconnect solutions for the automotive industry; increasing production capacity through investments in new equipment and facility upgrade; offering a broader and diversified range of electronic manufacturing services, as well as expanding the application of lead frame products that are manufactured by the company.
“In 2017, we embarked on an R&D initiative to develop production capabilities in optoelectronic lead frames for application in LED lighting and daytime running lights for the automotive industry. Our R&D efforts in this area have led to the design and development of processes and quality control systems for metal stamping as well as surface finishing and treatment services to meet the needs of the automotive industry,” Lim added.
Currently, Lim Say Soon and Lim Say Peng, co-founder and executive director of Amlex, are substantial shareholders with 34.7% and 24.3% stake respectively, while the remaining 41% stake are held by pre-LEAP investors.
After listing, Say Soon and Say Peng’s stake will be diluted to 29.5% and 20.7% respectively while the pre-LEAP investors stake will be reduced to 34.9%.
For the financial year ended March 31, Amlex reported a net profit of RM2.2 million on the back of RM39.3 million revenue.
M&A Securities Sdn Bhd is the approved adviser, placement agent and continuing adviser for the placement and LEAP Market listing exercise.