INTEGRATED engineering supporting services provider, Coraza Integrated Technology Bhd (Coraza), which is set to be listed on Bursa Malaysia’s ACE Market, is optimistic about its prospects for 2022 following the rapid growth in the semiconductor industry.
Managing director Lim Teik Hoe said demand would be coming from the telecommunications industry, as well as the automotive and aerospace sectors.
“The rush into the 5G network has provided enough support for the semiconductor industry, and this is only one segment of the telecommunication sector.
“As for the automotive sector, the days of petrol cars are numbered. We are moving to electric cars and electric trains which are controlled by a system, and this will eventually create demand for the semiconductor industry,” he told a press conference on the launch of the company’s prospectus today.
Lim also said the aerospace sector will make a comeback within two years after the pandemic and generate demand for the semiconductor sector.
The semiconductors industry account for 58.7% of Coraza’s revenue in financial year 2020, followed by the instrumentation industry (19.6%), life science and medical devices (16.8%) and aerospace, telecommunications and electric and electronic industries (4.9%).
Coraza expects to raise RM33 mil from its initial public offering (IPO) through its listing on the ACE Market on Jan 20, 2022.
The IPO is open for subscription from today to Jan 6, 2022.
Of the proceeds, RM15.5 mil or 47% will be used to purchase new machinery over the next three years for its existing and new factory in Nibong Tebal, Penang.
“A further RM6.4 mil or 19.5% of the proceeds will be used to part-finance the construction of a new factory, as the company expands production capacity and service offerings to take advantage of the rapid growth in the semiconductor industry,” Lim said.
The new factory, which is adjacent to Coraza’s current factory, is expected to have a total built up area of about 91,110.1 square feet. – Dec 22, 2021
