Latest news with #OxfordInnotech
The Star
3 days ago
- Business
- The Star
Oxford Innotech's earnings set to rebound in FY26
PETALING JAYA: Integrated engineering solutions provider Oxford Innotech Bhd is expected to see a rebound in earnings from financial year 2026 (FY26) onwards following a temporary slowdown in FY25 due to a high base effect from earlier project recognitions. In a report, TA Research forecasts that the group's earnings will register a 15.4% year-on-year (y-o-y) decline in core net profit to RM13.3mil in FY25. This comes after a sharp jump in earnings in FY24, which saw its core profit surge 104.6% y-o-y to RM15.7mil on the back of higher modular building system orders. However, earnings are expected to recover in FY26 and FY27, supported by its business expansion plan and a healthy industry outlook. 'We believe the group will recover in the subsequent years, with a projected earnings growth of 9.5% and 14.3% to RM14.6mil and RM16.7mil for FY26 and FY27, respectively,' said the research house. Oxford Innotech is scheduled to list on the ACE Market of Bursa Malaysia on July 29, 2025. Its initial public offering (IPO) comprises 143.46 million new shares with an offer for sale of 50 million shares at an issue price of 29 sen a piece. Upon listing, the group is expected to be valued at a market capitalisation of RM205.9mil. Expected to raise RM41.6mil from the IPO exercise, more than half of the proceeds will be allocated to the construction of a new factory at RM23.1mil. The remainder of the proceeds will be put aside for the purchase or refinancing of new machinery, general working capital and estimated listing expenses of RM11.17mil, RM3.33mil and RM4mil, respectively. Additionally, the group's future plans include the expansion of its product offering and customer base, as well as the expansion of production capacity and capabilities. The construction of phase 2 of its Factory 2 at Penang Science Park will add about 68,000 sq ft of manufacturing space for the group. 'Post-listing with the utilisation of IPO proceeds, the balance sheet is expected to improve from a net debt of RM16.9mil to a net cash position of RM16.8mil,' said TA Research. Furthermore, Oxford Innotech currently does not have any formal dividend policy. The research house assigned a target price-to-earnings multiple of 14 times to the group and arrived at a fair value of 29 sen per share, citing Oxford Innotech's established track record, ability to offer a wide range of products and services, as well as its experienced team.
The Sun
26-06-2025
- Automotive
- The Sun
Oxford Innotech to ride on surging demand in engineering solutions industry growth
KUALA LUMPUR: Integrated engineering solutions provider Oxford Innotech Bhd is capitalising on the surging demand in the semiconductor, electric vehicle, and modular building systems sectors to fuel growth. With the outlook for Malaysia's engineering solutions industry remaining robust, projected to expand at a compounded annual growth rate (CAGR) of 10% to RM38.2 billion by 2027, the company is constructing a new 68,000 sq ft factory to bolster its production capacity and support future growth. The facility, expected to be completed within two years, underscores the company's commitment to tapping into the domestic and region dynamic industrial growth. 'Together with our new and ready capacity of 40,000 sq ft at our existing facilities, we will increase our total production area by 108,000 sq ft, translating into a 125% increase over our existing capacity. 'We will also purchase new machinery and equipment to strengthen our production capabilities,' Oxford Innotech managing director Ng Thean Gin said at the company's prospectus launch yesterday. When asked, Ng said the company will not have any significant impact from the US reciprocal tariffs, as 96% of the company's revenue contribution is local and only 4% is from overseas. When asked if they expect the revenue contribution from the overseas market to grow any further, he said the company does not foresee overseas contribution extending beyond 10% for the next one to two years. 'We do not anticipate our overseas revenue contribution to exceed 10%,' he said after the company's prospectus launch yesterday. With its HQ in Penang, OXB, through its subsidiaries (collectively known as the group), offers integrated engineering solutions, mechanical assembly solutions, as well as automation and robotic solutions. It serves as a one-stop solution provider, enhancing overall value chain efficiency and reducing customers' reliance on multiple vendors. Operating across five manufacturing facilities in Penang and Kedah, OXB caters to key sectors including semiconductor, electrical and electronics, automotive, and modular building systems. The group's clientele includes multinational corporations listed on, among others, the Nasdaq, Kosdaq, Singapore Exchange, and Bursa Malaysia, as well as local companies, with some business relationships spanning up to 18 years. Ng said the launch of the prospectus marks a significant milestone in the company's corporate journey. OXB is raising RM41.6 million through its IPO, issuing 143.5 million new shares (20.2% of the enlarged capital) and offering for sale 50 million existing shares (7% of the enlarged capital). From the proceeds, the company will utilise 55.5% (RM23.1 million) to fund a new factory, 26.9% (RM11.2 million) for machinery purchases and refinancing, 8% (RM3.3 million) for working capital, and 9.6% (RM4 million) for listing expenses. Of the 143.5 million new shares, 35.5 million are for Malaysian public application, 27 million for eligible directors, employees, and contributors (Pink Form Allocations), and 81 million via private placement to Miti-approved Bumiputera investors. For the 50 million existing shares under offer, 7.8 million are allocated to Miti-approved Bumiputera investors, and 42.2 million are allocated to selected investors through private placement. OXB will have a market capitalisation of RM205.9 million upon listing based on an enlarged issued share capital of 710 million shares and an IPO price of RM0.29 per share. OXB is scheduled to be listed on the ACE Market of Bursa Securities on July 29. Malacca Securities Sdn Bhd serves as the principle advisor, sponsor, underwriter and joint placement agent, while Kenanga Investment Bank Bhd is the joint placement agent. WYNCORP Advisory Sdn Bhd is the corporate finance adviser for the IPO exercise.
The Star
05-06-2025
- Business
- The Star
Oxford Innotech inks IPO deal
KUALA LUMPUR: Oxford Innotech Bhd has inked an underwriting agreement with Malacca Securities Sdn Bhd for its initial public offering (IPO) en route to its listing on the ACE Market of Bursa Malaysia. In a statement, the integrated engineering solutions provider said the IPO consists of a public issue of 143.5 million new shares and the sale of 50 million existing shares. 'Of the 143.5 million new shares, 35.5 million shares will be made available to the Malaysian public and 27 million shares to eligible directors, employees and persons who have contributed to the success of the group (pink form allocations).' Oxford Innotech is to be listed on the ACE Market by the third quarter of 2025. Malacca Securities serves as the principal adviser, sponsor, underwriter and placement agent, while Wyncorp Advisory Sdn Bhd is the corporate finance adviser for the IPO. — Bernama
New Straits Times
05-06-2025
- Business
- New Straits Times
Oxford Innotech inks up IPO underwriting agreement with Malacca Securities
KUALA LUMPUR: Oxford Innotech Bhd has inked an underwriting agreement with Malacca Securities Sdn Bhd for its initial public offering (IPO) en route to its listing on the ACE Market of Bursa Malaysia Securities Bhd. In a statement today, the integrated engineering solutions provider said the IPO consists of a public issue of 143.5 million new shares and the sale of 50 million existing shares. "Of the 143.5 million new shares, 35.5 million shares will be made available to the Malaysian public and 27 million shares to eligible directors, employees and persons who have contributed to the success of the group (pink form allocations). "The remaining 81 million new shares will be offered by way of private placement to selected bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI)," it said. Meanwhile, as for the 50 million existing shares under offer for sale, 7.8 million shares will be made available to selected bumiputera investors approved by MITI, with the remaining 42.2 million shares to be allocated to selected investors through private placement. Under the agreement, Malacca Securities will underwrite 62.5 million new shares, comprising 35.5 million new shares to the Malaysian public and 27 million new shares under the pink form allocations, it said. Oxford Innotech managing director Ng Thean Gin said the company is expanding both its production capacity and capabilities to cater to the rising demand for precision engineering solutions, especially in the semiconductor and modular building systems sectors. "Leveraging our extensive expertise and tailored engineering capabilities, we are able to deliver high-quality products and services that address the unique needs of our customers, enabling them to remain competitive and agile in a competitive market," he said. Citing independent market research by Providence Strategic Partners Sdn Bhd, the company said that Malaysia's engineering solutions industry is projected to grow to RM38.2 billion by 2027, from RM27.6 billion in 2023, supported by the rising adoption of electric vehicles and artificial intelligence, as well as a shift toward modular building systems. Oxford Innotech is scheduled to be listed on the ACE Market of Bursa Securities by the third quarter of 2025. Malacca Securities serves as the principal adviser, sponsor, underwriter and placement agent, while Wyncorp Advisory Sdn Bhd is the corporate finance adviser for the IPO exercise.
