Salutica gets Bursa's green light for ACE Market listing

by **Cals** Wed 06 Apr 2016, 01:12

Salutica gets Bursa's green light for ACE Market listing

By Meena Lakshana / theedgemarkets.com | April 5, 2016 : 3:47 PM MYT

KUALA LUMPUR (April 5): Salutica Bhd, an original design manufacturer of electronic components, has obtained the approval of Bursa Malaysia Securities to proceed with its proposed initial public offering (IPO) on the ACE Market of the local bourse.

In a statement today, Salutica said this will enable its admission onto Bursa's Official List, and the listing and quotation of its entired issued and paid-up share capital on the ACE Market of the local bourse.

Its proposed IPO will involve 101 million shares of 10 sen each, comprising a public issue of 78 million new shares and an offer for sale of 23 million existing shares.

Proceeds of its IPO will be used for working capital (23.6%), future development of the Fobo brand and other potential in-house brands (15%), repayment of bank borrowings (26.9%), and estimated listing expenses (7%).

The company is in the midst of finalising a date to issue its prospectus, it said.

Salutica managing director and chief executive officer (CEO) James Lim said the proposed listing will strengthen the company’s position as a vertically-integrated consumer electronics manufacturer, and enhance Salutica’s corporate reputation, as well as brand name recognition.

“We are thankful to the capital market regulators for granting us the approval to list and are mindful of the responsibilities that come with being a publicly-traded company,” he said.

“It is a testament to the diligent efforts of the team here at Salutica that the company has come this far, and we are excited to continue to grow, moving forward," he said, adding that it is optimistic about its growth prospects and remain committed to sustained value creation for its shareholders.

Salutica’s wholly-owned subsidiary, Salutica Allied Solutions Sdn Bhd, is principally involved in the design, development and manufacture of consumer electronic products, such as Bluetooth-related devices and other electronic products for internationally well known brands.

Based in Ipoh, Perak, the Salutica Group has about 800 employees at a manufacturing plant, with a total built up area of approximately 30,000 square metres, the statement read.

Salutica successfully launched its in-house brand, FOBO, in April 2013, with its range of products utilising Bluetooth 4.0 technology.

To date, Salutica’s range of FOBO products include security tags, and a broad range of tyre pressure monitoring system devices for motorcycles, cars, light trucks and vans.

"These FOBO products are mainly exported to overseas markets, such as the United States, Europe, China, United Kingdom, Japan, Australia, Germany, France and Russia," it said.

For its financial year ended June 30, 2015, the group recorded a net profit of RM27.41 million and RM192.52 million of revenue, compared with a net profit of RM60.12 million and a revenue of RM204.13 million a year ago.