MMIS Bhd closed its first trading day on LEAP Market of Bursa Malaysia Securities Bhd 25% higher than its initial public offering (IPO) price of 10 sen.
The counter ended the trading day last Friday at 12.5 sen as investors saw the prospect of the company.
Its MD Loh Chin Soon said the precision engineering industry in Malaysia has shown promising growth prospects and is optimistic that MMIS will be in a strong position for the long haul.
He said the company’s wholly owned subsidiary, Multi Mould Industries Sdn Bhd (MMI) for the financial year ended June 30, 2018 (FY18), registered a revenue of RM17.02 million, an 82% increase from RM9.34 million recorded in the previous financial year.
“Its profit before tax for FY18 was RM5.27 million, 207% higher than RM1.71 million registered in the last financial year,” he said in a statement following the listing of the company.
MMIS first interim unaudited financial report on Aug 30, 2019, for FY19, showed a revenue of RM13.57 million and profit after tax of RM3.49 million after distributing non-renewal listing expenses of RM590,000.
MMIS unaudited report for FY19, registered a revenue of RM13.57 million with profit after tax of RM4.06 million.
MMIS placed out 50 million new ordinary shares representing 10% of the company’s enlarged share capital to selected sophisticated investors at 10 sen per share. The listing would enable the company to become the leading manufacturer and total solutions provider in precision metal fabrication in Malaysia as well as the Asean region.
The average utilisation rate of MMIS computer numerical control machines is at approximately 73% while the production space is fully utilised, the company said.
In anticipation of increasing orders and needing more production space, the company plans to use part of the proceeds raised from the listing and bank borrowings to enlarge its current facility and increase floor production space from 32,400 sq ft to 66,600 sq ft by the end of 2020.
MMIS machinery can undertake a wide range of specifications that allow them to expand offerings to acquire new and existing customers, as well as to penetrate various industries. The industries included are medical, engineering, electronic packaging, oil and gas, power generation and automotive.