KUALA LUMPUR: TT Vision Holdings Bhd expects to raise RM28.7 million through its initial public offering (IPO), in conjunction with its listing on the ACE Market of Bursa Malaysia.
TT Vision, which is principally involved in the development and manufacturing of machine vision equipment, said the IPO would involve a public issue of 84.5 million new shares at 34 sen each.
A total of RM3.6 million will be raised through the offer-for-sale exercise involving 10.5 million existing shares by certain offerors.
Based on the enlarged share capital of 468 million shares and IPO price of 34 sen, TT Vision's market capitalisation will work out to RM159.12 million.
Chief executive officer and executive director Goon Koon Yin said with the demand for optoelectronics and solar within the semiconductor industry expected to continue growing, the company had set sights on the huge growth potential of both local and global machine vision equipment markets.
"We intend to expand our coverage to more foreign markets with the aim of raising market awareness and securing orders from prospective customers by participating in exhibitions and conferences in the next two years.
"We are optimistic that the proactive marketing activities will boost our market presence and increase branding exposure at the international stage," he said.
TT Vision said of the RM28.7 million, 37.2 per cent of the proceeds would be utilised for working capital, 27.8 per cent for research and development (R&D), 20.9 per cent towards the repayment of bank borrowings, and three per cent for marketing activities.
It added that 11.1 per cent of the proceeds would go to the listing expenses.
KAF Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.