Inari gains 6.5 sen on debut

KUALA LUMPUR: Inari Bhd made its debut on the ACE Market of Bursa Malaysia yesterday, closing 6.5 sen higher than its issue price of 38 sen.

It was the most active counter closing at 44.5 sen with 44.89 million shares done.

“The opening price is as expected. The board is quite happy with it,” managing director Dr Tan Seng Chuan told reporters following the listing ceremony.

He said proceeds totalling RM31.5mil would be used for the company’s expansion and awareness programmes. Of these, RM17.5mil is allocated for capital expenditure, RM7.6mil for repayment of debt and RM2mil to cover listing expenses.
Non-independent non-executive director, Datuk Thong Kok Khee striking the gong at the listing of Inari Bhd on the ACE Narket of Bursa Malaysia yesterday. Other directors and officials were also present.

The company is a semiconductor packaging specialist, providing products used mainly in wireless telecommunications by global players in the mobile industry.

Tan said Inari, which has begun building its fourth plant costing RM25mil in the Free Industrial Zone in Bayan Lepas, Penang, expected to increase its revenue by 25% to 30% when the plant was operational by March next year. “We expect to go on full capacity once it is completed. In the EMS (electronics manufacturing services) business, customers will only talk to us if we have space, equipment and people.”

He added that the company was utilising more than 90% of existing capacity.

“We have grown very fast in our first few years but have slowed down this year as we were preparing for the listing.

About 98% of its revenue is channeled from foreign shores, namely from Avago Technologies Trading Ltd, an American company listed on Nasdaq.

In the press statement, Avago said the semiconductor was expected to grow moderately due to global demand for electronics and emerging economies.