ACE Market-bound TTVHB 0272 TT VISION HOLDINGS BERHAD to raise RM28.7mil from IPO
KUALA LUMPUR: TT Vision Holdings Bhd, en route for a listing on the Bursa Malaysia ACE Market on Jan 18, 2023, aims to raise RM 28.7 million from its initial public offering (IPO).
The company, which is principally involved in the development and manufacturing of machine vision equipment, is offering 84.5 million new shares at an issue price of 34 sen per share.
"The proceeds from the IPO will mainly be used for the expansion of our research and development (R&D) segment and for working capital to continue the group’s growth momentum,” said chief executive officer and executive director Goon Koon Yin at the launch of the IPO prospectus today.
He said 27.85 per cent or RM8.0 million of the proceeds would be used as R&D expenditure, 37.17 per cent (RM10.68 million) for working capital, 20.88 per cent on repayment of borrowings (RM6 million), 11.14 per cent (RM 3.2 million) on estimated listing expenses and 2.96 per cent (RM850,000) for marketing.
"We intend to strengthen our R&D capabilities and expand the department with relevant talents from the industry, and procure materials as well as equipment and software for the development of prototypes to ensure TT Vision stays ahead of the latest technologies.
"The expanded R&D department will enable us to innovate further and develop new products to fulfil the needs of our customers,” he said.
Upon listing, TT Vision will have enlarged issued shares of 468.0 million with a total market capitalisation of RM159.12 million.
The group's principal markets are Malaysia and China, and it is also present in South Korea, the Philippines, the United States, Thailand, Vietnam, Singapore and Hong Kong.
Goon said TT Vision plans to expand its coverage to more foreign markets to enhance market awareness and subsequently secure orders from prospective customers.
"As demand for optoelectronics and solar panels within the semiconductor industry is expected to continue growing, we have set our sights on the huge growth potential of both our local and global machine vision equipment markets,” he added.
KAF Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO exercise. - Bernama