BAYAN LEPAS: ACE Market-bound Emits Bhd, an antenna manufacturing service provider, aims to raise RM15 million in its initial public offering (IPO) at an issue price of RM0.16 per share.
Of the total proceeds raised, the group will allocate RM6.8 million (45.3%) to working capital, comprising RM6 million to support new projects, particularly the group’s 5G base station antenna project, and RM0.8 million for general working capital requirements.
A further RM4 million (26.7% of total) will be used to purchase machinery and equipment for the group’s research and development (R&D) activities, including prototyping and design machines.
The balance RM4.2 million (28% of total) will be utilised to defray listing expenses.
At the launch of its prospectus yesterday, group managing director Ts. Loy Boon Liang said this brings the group a step closer to listing on the ACE Market for its next phase of growth.
“Since we began in 2016, we have built a strong foundation and track record in antenna manufacturing, with an established international presence supported by long-standing relationships with multinational customers that require precision execution to meet their stringent product quality assurance standards,” he said.
Emits is an original equipment manufacturer (OEM) specialising in providing end-to-end antenna manufacturing services, mainly encompassing design, production, assembly and testing.
With more than 10 years of operating history, the group serves local and foreign customers, primarily listed corporations and multinational companies, with the USA as its key overseas market.
Today, the group continues to maintain an excellent relationship with its first customer since commencing operations in 2016.
Headquartered in Bayan Lepas, Penang, the group operates a manufacturing facility in the Bayan Lepas Free Industrial Zone, supported by an outsourced assembly and testing line in Taiwan.
Emits manufactures a wide range of passive antenna products mainly for brand and product owners, mostly telecommunications companies.
The passive antenna products manufactured are used in various telecommunication products such as walkie-talkies, radio transceivers, and other telecommunication devices and equipment for public service, consumer, industrial, and automotive applications.
Loy said the demand for high-performance antennas is expected to grow, driven by increasing needs for private mobile radio communication as well as wireless connectivity from, amongst others, 5G and future 6G deployment.
“We will continue to enhance our capabilities and to expand our suite of product offerings to tap on emerging opportunities,“ he said.
The global passive antenna industry, in terms of passive antenna sales, increased from US$3.4 billion (RM14 billion)in 2021 to US$4.8 billion in 2025 at a compound annual growth rate of 9%.
Independent market researcher Providence Strategic Partners Sdn Bhd projects the global passive antenna industry, in terms of passive antenna sales, to increase from US$4.8 billion in 2025 to US$5.7 billion in 2028 at a CAGR of 5.9%.
Future demand for passive antennas will be driven by growth in the telecommunications, automotive, consumer electronics, and aerospace and defence segments globally.
“As part of our long-term growth strategy, we have invested in and set up four new production lines at our Penang factory dedicated to producing 5G base station antennas, a new product offering.
“Leveraging our investment in 5G base station antenna manufacturing capabilities, we see opportunities to scale our revenue by diversifying our product offerings and positioning our group for the next phase of growth,” said Loy.
He said the group’s listing status as an ACE Market listed issuer will enhance its corporate profile, which is key to developing business relationships with large multinational customers.
“In addition, the IPO proceeds will provide our group with additional working capital to support manufacturing of 5G base station antennas.
“We also intend to strengthen and ramp up our R&D capabilities through a dedicated line of new machinery and equipment for R&D purposes.
“These efforts will improve our prototyping and design capabilities and allow us to pursue a wider range of complex customer requirements,” he said.
The IPO involves issuing 93.754 million new shares, representing 20% of the company’s enlarged share capital, and an offer for sale of 37.502 million existing shares, equivalent to another 8%.
Of the 93.754 million new shares, 23.439 million will be offered to the Malaysian public through balloting, while 11.719 million will be allocated to eligible directors, employees and other contributors to the group.
The remaining 58.596 million new shares, together with 37.502 million existing shares, will be placed privately with selected investors.
Upon listing, Emits is expected to have a market capitalisation of RM75 million based on an enlarged issued share capital of 468.769 million shares and the IPO price of RM0.16 per share.
Between the financial years ended Dec 31, (FY23) and FY25, the group’s revenue grew from RM32 million to RM39.6 million.
Over the same period, profit after tax more than doubled from RM2.2 million to RM5.2 million, representing a compound annual growth rate of 53.7%.
Mercury Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.
