Minox makes market debut with 26% premium

KUALA LUMPUR: Distributor of stainless steel sanitary valves, tubes and fittings, Minox International Group Bhd made its debut on the ACE Market of Bursa Malaysia at a 26% premium over its initial public offering (IPO) of 25 sen.

At the opening bell, share price of Minox opened at 31.5 sen, representing a premium of 26.0% with an opening volume of 27,729,300 shares.

“Today is a momentous day in Minox’s corporate history, opening a new chapter for us as a listed entity after being in operation for more than two decades.

“I am also truly humbled by the warm reception we received from investors. Backed by this confidence, we are motivated and energised to forge ahead and execute our multi-pronged growth strategy,” managing director Cheong Chee Son said in a statement.

He said the RM22.5mil fresh capital raised through the IPO puts it on a strong footing to implement its plans.

“We will introduce new vacuum fittings and valves tailored for semiconductor production lines and construct a fourth warehouse in Puchong to cater for higher sales volume.

“Beyond local shore, we are setting up a new warehouse in Singapore to store our new vacuum fittings and valves for the semiconductor industry as well as to store inventories that cater for customers in Singapore and abroad. These calculated steps shall help deepen our presence in the semiconductor industry and enhance our inventory capacity as we continue to expand our business,” Cheong said.

The company has raised a total of RM22.5mil from the IPO, of which 57.9% of the proceeds to be utilised towards business expansion. The Company has allocated RM4.0mil (17.8%) for product development and deployment; RM4.0mil (17.8%) for the construction of Warehouse 4; and RM5.0mil (22.3%) for the setting up of a new warehouse in Singapore.

The remaining proceeds are earmarked for repayment of bank borrowings, general working capital, and estimated listing expenses.

M & A Securities Sdn Bhd is the advisor, sponsor, underwriter and placement agent for Minox’s IPO exercise.