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| Lim: ‘These favourable conditions will hopefully continue to create new possibilities for Salutica.’ |
KUALA LUMPUR: Salutica Bhd, en route to be listed on the Ace market of Bursa Malaysia on May 18, is poised to raise gross proceeds of RM62.4mil of which RM25mil has been earmarked to expand the company’s capacity in the production and creation of high end bluetooth related products range.
The initial public offering (IPO) price would be at 80 sen per share involving a total offering of 101 million ordinary shares comprising a public issue of 78 million new shares and an offer for sale of 23 million existing shares.
“Looking ahead, Salutica will continue to focus on high value added bluetooth products as we believe it remains a compelling market as well as being a technology that is entrenched in our daily lives.
“New applications of bluetooth technology are being developed and introduced every now and then for use in wearables, home applications and even the healthcare industry just to name a few.
“About three billion bluetooth products were shipped worldwide in 2013, and this number is expected to reach 4.9 billion in 2018. Furthermore, with the advent of the Internet of Things (IoT), we will see an increased connectivity in our daily lives, and IoT is a concept which is already embodied in our in-house brand- FOBO products.
“These favourable conditions will hopefully continue to create new possibilities for Salutica to explore further growth and expansion,” said managing director and chief executive officer James Lim at the company’s prospectus launching yesterday.
Salutica, through its 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, as well as other electronic products and precision parts and components for multinational corporations and brands.
Salutica also has its own in-house product line of Bluetooth 4.0 technology products, under the brand name of FOBO and the current product line comprise amongst others, FOBO Tire, FOBO Tire Plus, FOBO Bike, FOBO Xtra, FOBO Tag, FOBO Max and FOBO Beacon.
The remaining RM8.2mil is for the expansion of the company’s research and development department, expansion of facilities, equipment as well as workforce.
The balance of RM8.5mil will be allocated for the repayment of bank borrowings, and a further RM4mil will be allocated to defray listing expenses. RHB Investment Bank Bhd is acting as the principal adviser, sponsor, underwriter and placement agent for this IPO.
SALUTE (0183) - Salutica to raise RM62mil from IPO
http://www.thestar.com.my/business/business-news/2016/04/29/salutica-to-raise-rm62mil-from-ipo/
