PETALING JAYA: Volcano Bhd is looking to list on the ACE Market of Bursa Malaysia.
According to its draft prospectus exposure filed with the Securities Commission Malaysia, its initial public offering (IPO) exercise involves a public issue of 125 million new shares and an offer for sale of 175 million existing shares.
Of the 125 million new shares, some 41.25 million shares are made available for the Malaysia public; 41.25 million shares for eligible directors, key senior management personnel, employees and business associates; and 42.5 million shares by way of private placement to identified investors.
Volcano is involved in the manufacturing of parts and components used in the electrical and electronics (E&E) and automotive industries, namely nameplates and plastic injection moulded parts.
It carries out the manufacturing of nameplates at its head office and factory in Perai, Penang, as well as at its factory in Rayong, Thailand. The manufacturing of plastic injection moulded parts, meanwhile, is carried out at the Rayong plant.
Going forward, the company intends to expand its plastic manufacturing business with the purchase of additional plastic injection moulding machines.
It also plans to expand its factory in Rayong, Thailand in anticipation of growth in its business.
For the financial year ended Dec 31, 2018, Volcano reported a net profit of RM6.95 million. Excluding the IPO expenses, its net profit would have been higher at RM7.79 million, which translates into a net profit margin of 13.28%.