IPO oh IPO

Greatech or HPMT???
Greatech:

GREATECH TECHNOLOGY BERHAD (“Greatech” or the “Company”) <阁代科技有限公司> an industrial automation solutions provider has advanced closer to becoming a public listed entity with the launch of its prospectus in conjunction with the Company’s listing on the ACE Market of Bursa Malaysia Securities Berhad. The prospectus launch marks the opening of Greatech’s retail offering of 18.78 million shares for the Malaysian public. The retail applications will close on 24th May 2019. The Company is slated for listing on 13th June 2019 with market capitalisation of RM381.86 million.

Greatech and its subsidiaries (the “Group”) are involved in the design, manufacturing, installation and commissioning of customised single automated equipment up to production line systems for industrial process automation. Backed by its in-house design and machining capabilities to customize unique solutions to fit clients’ requirements, the Group has been making headway globally, serving a clientele profile which includes recognizable names such as First Solar and Panasonic. The Group charted an impressive growth trajectory with revenue multiplying by more than ten folds over the last four financial years. For financial year ended 31 December 2018, the Group recorded revenue of RM219.58 million and profit after tax of RM31.72 million with approximately 90% of revenue derived overseas.

Listing Detail:
Listing Sought: ACE Market
Issue Price: RM0.61

Dates:
Offer Period Open: 13 May 2019
Offer Period Close: 24 May 2019
Tentative listing date: 13 Jun 2019

Number of shares:
Public Issue: 119,750,000
Private Placement: 91,580,000

HPMT:

The IPO exercise will raise RM42.3 million, of which RM34.0 million has been earmarked for the purchase of new machineries while RM2.9 million will be used as working capital. 

HPMT is a manufacturer and distributor of cutting tools. HPMT also trades in third-party cutting tools, supporting equipment and accessories for metalworking, as well as provides physical vapor deposition coating services. HPMT currently distributes to more than 30 countries, mainly in Europe and Asia under its own HPMT brand and its distributors’ private labels. According to the Independent Market Researcher Report prepared by Protégé Associates Sdn. Bhd., HPMT has an export market share of about 23.6% based on the export revenue of RM68.3 million in FYE2018, making HPMT among the prominent cutting tool manufacturers in Malaysia.

“With the new machineries purchased using the proceeds raised (from the IPO), we will be able to increase our production quantity and be ready to meet any increase in demand for our cutting tools. The purchase of the new machineries will increase our production capacity by over 40% to 212,600 pieces (of cutting tools) monthly as at 31 December 2021 (from 148,200 pieces as at 31 December 2018).

Indicative timetable

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