The expansion plan will include the acquisition of complementary design portfolio assets to diversify its revenue stream as well as a collaboration with tertiary institutions such as Universiti Sains Malaysia (USM), INTI Penang and the Asia Pacific University of Technology & Innovation to secure future design engineers.
Oppstar intends to issue 636.2 million shares at 63 sen, raising its market capitalisation to RM400.81 million.
The company will make its debut on the ACE Market on March 15.
At the launch of the IPO prospectus today, Ng said 5% of the shares have been earmarked for sale to the Malaysian public while another 12.5% will be set aside for private placement to Bumiputera investors.
The top directors will remain substantial shareholders of the group, with Ng holding a 20.06% stake, chief technology officer Cheah Hun Wah with 21.09% and chief financial officer Tan Chun Chuat holding a 13.4% stake.
Ng said 47.96% of the proceeds from the IPO will be used to finance an effort to expand the workforce and another 23.98% will be invested in establishing new offices in Penang, India and Taiwan in the next six months.
Oppstar’s primary business is in designing integrated circuits (IC) using advanced process node technology, and other services in the front-end of the semiconductor industry.
Oppstar’s IPO comes on the back of a strong financial performance in the last few years. The group has seen a compound annual growth rate (CAGR) of 77.96% in revenue from RM15.965 million in financial year 2020 (FY20) to RM50.561 million in FY22.
The profit has also charted an impressive growth — registering a CAGR of 528.48% in the same period.
The group’s total assets stood at RM32.7 million against liabilities amounting to RM7.9 million as at Sept 30, last year.
Ng said the IPO would enable Oppstar to expand its existing capabilities in IC design to meet future demand.
Interestingly, 80% of the groups revenue comes from overseas — hence the drive towards establishing new offices and widening the group’s geographical base.
Oppstar began operations in 2014 in Penang, with three employees providing back-end IC design to a US-based company.
It subsequently moved its base of operations to Kuala Lumpur and has since then grown into a company with more than 200 design engineers, with plans to get 280 more.
Ng said 99% of Oppstar engineers are Malaysians.
The group also drew benefits from its MSC pioneer status which was awarded by the Malaysian government in 2022.
“Oppstar is a classic case of a home-grown company that has demonstrated grit, innovation and competitiveness in the global marketplace,” said Arham Abdul Rahman, CEO of the Malaysian Investment Development Authority.