KUALA LUMPUR: MMIS Bhd has today made its debut on Bursa Malaysia's Leading Entrepreneur Accelerator Platform (LEAP) Market at 12sen, 20 per cent above its IPO price.
MMIS' initial public offering (IPO) price was 10 sen and this morning, its first traded volume amounted to two million shares.
MMIS placed out 50 million new shares representing 10 per cent of the company’s enlarged share capital to selected sophisticated investors at 10 sen per share, raising a total of RM5 million.
MMIS has market capitalisation of RM50 million.
The Perak-based MMIS makes precision engineering parts and provides services for multinational customers in the semiconductor industry value chain.
It also caters for a wide range of industries, including but not limited to medical, engineering, electronic packaging, oil and gas, power generation and automotive.
At the listing ceremony, managing director Loh Chin Soon said MMIS was well-positioned to ride on the industry’s growth in the long-term.
“The average utilisation rate of our computer numerical control (CNC) machines is at 73 per cent while our production space is fully utilised.
"In view of increasing orders, we will need more production space. As such, we plan to use part of the proceeds raised from the listing and bank borrowings to enlarge our current facility.
"We will be expanding our floor production space from 32,400 sq ft to 66,600 sq ft by the end of 2020,” Loh added.
He assured investors that his team would leverage on technological know-how and proven track record to expand MMIS' range of offerings.
"Our existing customers are in the medical and engineering industries. We believe we can expand our product and service offerings in these new market segments,” he said.
In its filing to the stock exchange, MMIS noted that its first half profits ended June 2019 plunged 95 per cent to RM141,640 from RM2.74 million a year ago.
This was on the back of a 20 per cent decline in its half yearly revenue ended June 2019 to RM13.58 million from RM17.02 million previously.