KUCHING: 3REN Berhad (3REN), an automation solutions and engineering services provider, unveiled its prospectus for its initial public offering (IPO) in Kuala Lumpur, Wednesday.
According to its statement, the prospectus was launched in conjunction with its upcoming listing on the ACE Market of Bursa Malaysia Securities Berhad, which is slated for Nov 6, 2024.
It disclosed that the 3REN’s IPO exercise will raise RM30.8 million through a public issue of 110.0 million new ordinary shares at an issue price of RM0.28 per share where 62.3 per cent of the IPO proceeds are allocated for its business expansions and operational requirements.
Out of which, it said, 23.4 per cent will be utilised to set up new delivery centres in Penang which are designed to undertake specific product engineering services related to the design and development of semiconductor chips.
It added that another 16.6 per cent will be for research and development expenditure which includes the setting up of an innovation centre to support the development of new/enhanced solutions and equipment for its automation solutions segment.
Whereas, 9.7 per cent will be channeled towards the establishment of a sales office in Singapore to boost its geographical presence and 12.7 per cent will be for working capital, especially on increasing headcounts of its engineers and other skilled workforce.
The remaining balance of the IPO proceeds will be utilised for repayment of borrowings and listing related expenses.
“The public issue portion of the IPO will be made available for subscription from today and application will close at 5pm on Wednesday (Oct 23),” it said.
Commenting on the matter, 3REN Executive Director and Chief Executive Officer Koh Dim Kuan said the group sees immense potential for growth as the global semiconductor industry is set to continue expanding well into the next decade, driven by emerging technologies such as artificial intelligence, 5G adoption along with the internet of things.
“This growth stimulus is further supported by the modernisation and transformation of manufacturing facilities towards Industry 4.0 and 5.0 technology.
“This enables smart factories and sustainable operations in addition to the increased outsourcing and relocation of manufacturing activities to Southeast Asia which positions us favourably in capturing these unique opportunities,” he said.
Meanwhile, KAF Investment Bank Berhad Chief Executive Officer Rohaizad Ismail expressed confidence that 3REN will continue to excel given the experience and strong leadership of its management team, leveraging the IPO to successfully execute its growth plans amid a buoyant semiconductor industry.
He pointed out that the listing of 3REN is especially timely with the number of major investments in Malaysia by big tech players and various initiatives/policies unveiled by the government, including the National Semiconductor Strategy, to move up the country’s semiconductor value chain and focus on higher- value segments including technological innovations.
“The company’s listing on the ACE Market will undoubtedly serve as an effective platform for the Group as they embark on their next chapter of growth.
“We are very pleased to be part of this significant milestone of the company in its corporate journey,” he said.
