ELECTRONICS manufacturing services (EMS) provider Betamek Bhd today signed an underwriting agreement with institutional brokerage firm M&A Securities Sdn Bhd in conjunction with the former’s initial public offering (IPO) exercise on Bursa Malaysia Securities Bhd’s ACE Market.
The IPO entails a public issue of 67.5 mil new shares in Betamek, representing 15% of the enlarged share capital and an offer for the sale of 45.0 mil existing shares to selected investors by way of private placement.
Of the 67.5 mil new shares, 22.5 mil will be made available to the Malaysian public via balloting, 13.5 mil for its eligible directors, employees and others who have contributed to the success of Betamek Group under pink form allocations while the remaining 31.5 mil have been earmarked for private placement to selected investors.
Pursuant to the underwriting agreement, M&A Securities will underwrite a total of 36.0 mil new shares made available to the public and via pink form allocations.
Betamek managing director Mirzan Mahathir said the signing of the underwriting agreement came at an opportune time as the company is set to benefit from the pent-up demand for new vehicles and the launch of new car models by its key automotive clients.
“Over the years, we have gained a reputation as a reliable manufacturer and direct supplier of quality vehicle electronics and accessories to automotive makers,” he said in a statement announcing the signing.
“Our end-to-end EMS solutions for automotive makers enable us to support the automotive industry value chain as we undertake product design and development (D&D), prototyping, board assembly, electronics and mechanical assembly, testing, labelling, packaging and support services for automotive marques,” he added.
Continuing the group’s growth journey, Betamek plans to expand its range of product offerings relating to automotive electronics for future automobile models and variants.
“This allows us to capture a larger market share in the automotive EMS industry going forward”, said Mirzan, who is also the son of former prime minister Tun Dr Mahathir Mohamad.
Proceeds from the IPO will mainly be used to fund the research and development (R&D) activities for new product development and further expand the company’s R&D office space, raw material storage and ancillary facilities to cater to its future growth as well as future R&D activities.
Part of the proceeds will also be used to acquire machinery and equipment for its existing factory in Rawang to enhance its manufacturing efficiency and capabilities, repay bank borrowings, general working capital and defray estimated listing expenses.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO exercise.
Betamek targets to list on the ACE Market of Bursa Securities by October 2022.
The company is an EMS provider specialising in D&D procurement and manufacturing of customised electronics and components for the automotive industry.
It is principally involved in the D&D and manufacture of vehicle audio products and components comprising vehicle infotainment systems and audio video accessories as well as vehicle accessories such as air conditioning control panels, USB chargers, mirror switches, power sockets, reverse cameras and other car accessories. – Sept 13, 2022
