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The Sun
7 days ago
- 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.
New Straits Times
7 days ago
- Business
- New Straits Times
Oxford Innotech opens IPO applications at 29 sen to raise RM41.6mil
KUALA LUMPUR: Oxford Innotech Bhd has opened applications for its initial public offering (IPO) on the ACE Market at an issue price of 29 sen per share, aiming to raise RM41.6 million. The IPO comprises 143.5 million new shares, representing 20.2 per cent of the integrated engineering solutions provider's enlarged share capital, along with an offer for sale of 50 million existing shares. Based on the IPO price, the Penang-based firm is expected to attain a market capitalisation of RM205.9 million upon listing. Proceeds from the IPO will fund the company's expansion plans, including the construction of a new 67,722-square-foot (sq ft) manufacturing facility slated for completion in 2027. Managing director Ng Thean Gin said the company is also preparing to add 39,392 sq ft of new capacity by the third quarter of 2025 to meet near-term demand. "With these two additional facilities, our total manufacturing area will increase by 124.9 per cent to 192,896 sq ft," Ng said in a statement. Of the total proceeds, RM23.1 million or 55.5 per cent will go towards factory construction, RM11.2 million (26.9 per cent) for the purchase and refinancing of machinery, while the remainder will be allocated to working capital and listing expenses. The new shares include 35.5 million units for application by the Malaysian public, 27 million for eligible directors, employees and contributors to the group, and 81 million to be placed out to selected Bumiputera investors approved by the Investment, Trade and Industry Ministry. The offer for sale also includes a private placement of 50 million existing shares — 7.8 million to ministry-approved Bumiputera investors, with the balance to selected investors. For the financial year ended Dec 31, 2024, Oxford Innotech's revenue jumped 87.6 per cent year-on-year to RM92.9 million, while profit after tax surged 93.7 per cent to RM15.6 million. The growth was driven primarily by its precision engineering segment, which contributed 48.2 per cent of total revenue. Applications for the public issue are open from today and will close on July 16 at 5pm. The company is scheduled to list on July 29. Malacca Securities is the principal adviser, sponsor, and underwriter. It is also joint placement agent together with Kenanga Investment Bank, while WYNCORP Advisory is the corporate finance adviser.
BusinessToday
30-05-2025
- Business
- BusinessToday
Reach Ten Posts RM7.1 Million In Net Profit, Declares Maiden Dividend Post-Listing
Sarawak-based telecommunications company Reach Ten Holdings Bhd has declared its first interim single-tier dividend of one sen per share, amounting to RM10 million, for the financial year ending Dec 31, 2025. The dividend will be paid on July 31, 2025, to shareholders on record as of June 30, 2025. The announcement comes shortly after the company's listing on Bursa Malaysia's Main Market on May 2, and marks its first dividend payout as a public entity. Managing Director Leo Chin said the move aligns with Reach Ten's policy to distribute up to 30% of the company's net profit, reflecting its focus on sustainable shareholder returns. 'With healthy cash and bank balances and fixed deposits of RM63 million, Reach Ten aims to strike a balance between rewarding shareholders and reinvesting for future growth,' Chin noted. Chin shared that for the company's first quarter results for the period ended March 31, 2025 (1Q25), Reach Ten posted a net profit of RM7.1 million on revenue of RM23.1 million, representing two months of post-merger performance under MFRS 3 compliance. On a full-quarter basis, adjusted figures would have stood at RM28.4 million in revenue and RM8.2 million in net profit. Reach Ten's performance was driven primarily by its satellite-based communications segment, which contributed 63.2% of revenue. Fibre optic services and telecom infrastructure accounted for 21.4% and 15.4%, respectively. Chin noted that with broadband coverage in Malaysia's populated areas nearing 97.3%, and growing demand in Sarawak, Reach Ten sees strong momentum ahead. 'We remain confident in our growth trajectory, especially with our strategic focus on underserved markets in Sarawak. 'This, combined with supportive government policies and expanding infrastructure, positions us well to deliver long-term value,' Chin added. Related
New Straits Times
30-05-2025
- Business
- New Straits Times
Reach Ten logs RM7.1mil net profit on RM23.1mil revenue in Q1
KUALA LUMPUR: Sarawak-based telecommunications service provider Reach Ten Holdings Bhd (Reach Ten) posted a net profit of RM7.1 million on revenue of RM23.1 million for the first quarter (Q1) ended March 31, 2025. Revenue for the quarter was mainly driven by Reach Ten's satellite-based communication networks and services segment, which contributed 63.2 per cent of total revenue. "Fibre optic communication networks and services accounted for 21.4 per cent, while telecommunications infrastructure and managed services contributed 15.4 per cent," it said in a statement. There are no comparative figures for the corresponding preceding quarter's results as this is the second interim financial report by the company in compliance with the listing requirements. Reach Ten declared a first interim single-tier dividend of 1.0 sen per share for its financial year ending December 31, 2025 (FY25). The payout, totalling RM10.0 million, will be paid on July 21 to shareholders whose names appear on the record of depositors on June 30. Managing director Leo Chin said the maiden post-listing dividend is in line with the company's dividend policy to distribute up to 30 per cent of its net profit, reflecting its commitment to enhancing shareholder value and delivering sustainable returns. "With healthy cash and bank balances, as well as fixed deposits of RM63.0 million, Reach Ten aims to maintain a balanced approach between rewarding shareholders through dividend distributions and retaining sufficient capital to support future growth and strategic initiatives," Lee said. Reach Ten remains optimistic about its business outlook, supported by positive structural trends in Malaysia's telecommunications sector. "Our strategic focus on underserved markets, particularly in Sarawak, positions us well to capture emerging opportunities and deliver long-term value to our shareholders," Chin added.
Borneo Post
30-05-2025
- Business
- Borneo Post
Sarawak's Reach Ten posts RM7.1 million for 1QFY25, declares maiden dividend
Looking ahead, Reach Ten said the company remains upbeat about its outlook, supported by sustained growth in Malaysia's telecommunications sector. KUCHING (May 30): Newly listed Sarawakian telecommunications provider Reach Ten Holdings Berhad (Reach Ten) recorded a net profit of RM7.1 million on revenue of RM23.1 million for its first quarter results for the period ended March 31, 2025 (1QFY25). The results only cover February and March, following the completion of its subsidiaries' merger on February 5. For the two-month period, Reach Ten garnered an earnings per share of 0.89 sen. Gross profit stood at RM11.5 million, translating to a gross margin of 49.7 per cent. It also declared its first ever interim single-tier dividend of 1.0 sen per share for the financial year ending December 31, 2025 (FY25). The company in a statement today said the RM10 million payout will be made on July 21, 2025 to shareholders listed in the Record of Depositors as of June 30, 2025. Managing director Leo Chin said the dividend reflects the Company's commitment to deliver shareholder value, in line with its policy to distribute up to 30 per cent of net profit. 'With healthy cash and bank balances, as well as fixed deposits of RM63 million, Reach Ten aims to maintain a balanced approach between rewarding shareholders through dividend distributions and retaining sufficient capital to support future growth and strategic initiatives,' he said. Leo Chin The company said its strong margin was supported by the completion of service scopes under the VSAT broadband project in FY24 and continued extensions of the project this year. 'Revenue for the quarter was mainly driven by its satellite-based communication networks and services segment, which contributed 63.2 per cent of total revenue. 'Fibre optic communication networks and services accounted for 21.4 per cent, while telecommunications infrastructure and managed services contributed 15.4 per cent,' it added. There are no comparative figures from the same period last year as this is the company's second interim financial report following its Main Market listing on May 2. Chin added that the figures reflect only two months of post-merger performance, and that on a full-quarter basis, revenue and net profit would have been RM28.4 million and RM8.2 million respectively. Looking ahead, Reach Ten said the company remains upbeat about its outlook, supported by sustained growth in Malaysia's telecommunications sector. National broadband coverage in populated areas has reached 97.28 per cent, pointing to steady demand for connectivity. Sarawak has also experienced consistent growth, reinforcing the region's long-term potential. 'We remain confident in our growth trajectory, supported by rising demand for digital connectivity, favourable government policies, and continued infrastructure expansion. 'Our focus on underserved markets, especially in Sarawak, positions us well to capture future opportunities and deliver long-term shareholder value,' added Chin.
