Emits signs underwriting agreement for ACE Market listing on Bursa Malaysia

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Highlights

Mercury Securities Sdn Bhd is underwriting 35.158 million new shares for Emits' IPO on Bursa Malaysia's ACE Market, also acting as principal adviser and placement agent.
Emits' IPO involves the issuance of 93.75 million new shares and an offer for sale of 37.5 million existing shares, representing 28% of the enlarged issued share capital of 468.77 million shares.
IPO proceeds will be used for working capital for new projects and the purchase of machinery and R&D equipment, with overseas markets contributing more than 70% of Emits' revenue, led by the U.S. and Germany.

This article was translated from the original. Read the original version by our correspondent here.

IPO details and use of proceeds

As reported by The Edge Malaysia, Mercury Securities Sdn Bhd will underwrite 35.158 million new shares allocated to the Malaysian public, as well as directors, employees and eligible individuals who have contributed to the group's success. Mercury Securities is also acting as the principal adviser, sponsor, underwriter and placement agent for the IPO.

Emits' IPO involves the issuance of 93.75 million new shares and an offer for sale of 37.50 million existing shares, representing 20% and 8%, respectively, of the company's enlarged issued share capital of 468.77 million shares. Of the new shares, 23.439 million will be offered to the Malaysian public via balloting, while 11.719 million are allocated to eligible parties. The remaining 58.596 million new shares, together with all 37.502 million offer-for-sale shares, will be placed with selected investors.

Emits group managing director Loy Boon Liang said the proceeds from the public issue will be used to support working capital requirements for new projects, as well as the purchase of additional machinery and equipment for research and development activities. According to him, the initiatives are expected to strengthen the company's product offerings and development capabilities to capture broader opportunities in the antenna manufacturing market.

Operational capabilities and market outlook

Since 2016, Emits has provided antenna manufacturing services, focusing on the design, production, assembly and testing of antennas for telecommunications, automotive and industrial applications. Loy said land mobile radio antennas, commonly used in handheld radios and walkie-talkies, remain the group's core products, alongside investments in machinery to enter the 5G base station antenna manufacturing segment.

He said future demand for antennas is expected to rise in line with the growing use of telecommunications devices and equipment across various applications, including telecommunications, automotive, consumer electronics, aerospace and defence. The group operates a manufacturing plant in Bayan Lepas, Penang, supported by assembly and testing lines in Taiwan, while overseas markets contribute more than 70% of its revenue, led by the U.S. and Germany.

In our earlier coverage of Big Caring Group's IPO Bhd, we explained how the pharmacy group was approaching a Main Market listing on Bursa Malaysia after entering into a retail underwriting agreement with several investment banks. The article also outlined the offering structure of up to 1.9 billion shares (a combination of new shares and existing shares for sale), the breakdown of institutional and retail tranches, and how the listing was expected to support the company's network expansion plans and distribution capabilities.

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