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ACE Market-bound  TTVHB 0272 TT VISION HOLDINGS BERHAD IPO to raise RM32.3 mil

KUALA LUMPUR (Dec 29): TT Vision Holdings Bhd has set a price of 34 sen per share for its initial public offering (IPO) exercise that will raise RM32.3 million, including an offer for sale by existing shareholders for RM3.57 million.

Slated to list on the ACE Market of Bursa Malaysia on Jan 18, the IPO exercise entails a public issue of 84.5 million new shares to raise RM28.73 million and an offer for sale of 10.5 million existing shares to selected investors for RM3.57 million by way of private placement.

Of the RM28.73 million proceeds expected to be raised from the public issue, TT Vision has earmarked RM10.68 million (37.17%) for working capital and RM8 million (27.85%) for research and development (R&D) expenditure.

Another RM6 million (20.88%) will go towards the repayment of bank borrowings, RM850,000 (2.96%) will be used for marketing activities and RM3.2 million (11.14%) is to defray listing-related expenses.

Based on its enlarged issued share capital of 468 million shares and the issue price of 34 sen apiece, TT Vision will have a market capitalisation of RM159.12 million upon listing.

Breaking down the share allocation for the public issue, 23.4 million shares will be made available for application by the Malaysian public, 18.1 million shares for eligible directors, employees and persons who have contributed to the success of the group, and 43 million shares by way of private placement to institutional and selected investors.

TT Vision chief operating officer and executive director Joe Wong Yih Hsow said that the R&D expenditure will include purchases of materials and components for development of prototypes and product demo.

TT Vision also intends to participate in five to seven exhibitions and conferences each year for its marketing activities, he said, hinting on foreign countries such as China, Taiwan, Germany and the US in 2023 and 2024.

Wong was speaking at a media and analyst briefing after the company's prospectus launch on Thursday (Dec 29) at Pavillion Hotel in Kuala Lumpur.

Notably, TT Vision was listed on Bursa's Leap Market in 2019 and undertook a voluntary withdrawal in 2021.

The Penang-based company started as a private limited company in 2001 with its vision inspection modules designed for local semiconductor companies in the state.

For its financial year ended Dec 31, 2021 (FY2021), TT Vision posted a profit after tax (PAT) of RM8.34 million on the back of RM47.26 revenue. The company's earnings were higher than FY2020's PAT of RM1.52 million and revenue of RM24.93 million.

  For the cumulative first half ended June 30, 2022 (1HFY2022), TT Vision posted a PAT of RM5.2 million and a revenue of RM27.36 million.

TT Vision's principal markets are Malaysia and China.

TT Vision chief financial officer Deidre Yong Yee Mei, when presenting the financial reports, said China contributed RM20.1 million revenue in 1HFY2022, exceeding Malaysia's RM6.68 million.

China only contributed revenues of RM7.52 million in FY2021 and RM1.71 million in FY2020.

TT Vision chief executive officer and ED Goon Koon Yin said that Malaysia's revenue contribution has picked up in 2HFY2022, with China's contribution now balanced to be about 50%.

  According to its IPO fact sheet, TT Vision's main revenue came from discrete component and IC inspection in 2022 (71.1%) and optoelectronic inspection (40.05%) in 2021. Comparably, solar cell inspection was its main revenue in 2020 (63.11%) and 2019 (57.6%).

"As of November, we had RM20 million unfulfilled orders. We probably have a couple of millions we are going to fulfil in December and others for the next few months in 2023," said Goon regarding the company's current order book.

KAF Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for this IPO exercise.


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