The company is principally an investment holding company and is involved in electronics manufacturing services (EMS).

The IPO involves the issuance of 173 million new shares at 90 sen per share. Based on the enlarged share capital of 923 million shares post-IPO, Cape EMS’s market capitalisation will work out to be about RM830.7 million.

Of the expected total proceeds, RM53.1 million (34.1%) will be used for the construction of a new warehouse in Senai, Johor, and the installation of automated storage facilities while RM62.8 million (40.3 %) is marked for the setting-up of a new cleanroom facility and purchase of new automated production lines for EMS operations.

Its MD and group CEO Tee Kim Chin said the company is optimistic the added production capacity and automation facilities will enhance operational efficiency and help reduce reliance on manual labour.

“The key …(is to) focus all manufacturing in one location at the Senai 227 factory, and we are using the proceeds to actually build a warehouse to host all our incoming materials and our finished goods,” she told a press conference after launching the prospectus here today.

She said the market size for the manufacturing of electronic equipment in Malaysia in 2021 stood at RM123.4 billion, with Cape EMS’ current market share at less than 1%.

“The projected growth of the global semiconductor and electronics markets will drive the demand for EMS, and we have set sights on the huge growth potential of both the local and global EMS industries.

“The IPO exercise comes at an opportune time where we will be able to expedite growth with the proceeds raised,” she added.

The company serves customers from both the industrial and consumer sectors, mainly from the US, Europe and Asia-Pacific.

Hong Leong Investment Bank is the company’s principal adviser, joint bookrunner and joint underwriter while AmInvestment Bank Bhd is the joint bookrunner and joint underwriter.

The closing date for the IPO is Feb 24.