Semiconductor firm Mi Material lodges preliminary prospectus to raise an indicative S$168 million
[SINGAPORE] Singapore-incorporated Mi Material – the materials arm of Bursa-listed Mi Technovation – on Monday (Oct 5) lodged its preliminary prospectus to list on the mainboard of the Singapore Exchange.
It seeks to raise an indicative S$168.2 million from new shares, including those taken up by cornerstone investors.
Mi Material reported a profit of US$14.3 million for the six months ended Jun 30, a 396 per cent increase compared to US$2.9 million in the year-ago period. Revenue more than doubled to US$53.7 million, from US$25.6 million.
The solder-ball manufacturer will offer 77.5 million offering shares – comprising 51.5 million new shares and 26 million vendor shares – at an indicative offering price of S$1.80, with the final price to be confirmed on prospectus registration.
Of these, 71.3 million shares will be offered by way of an international placement and another 6.2 million shares through a public offer in Singapore.
That said, the company’s prospectus noted: “There is no minimum amount which, in the reasonable opinion of our directors, must be raised from the offering.”
Separate from the offering, seven cornerstone investors have entered into agreements to subscribe for an aggregate of 41.9 million shares.
These investors are:
- abrdn Asia
- Abrdn Malaysia
- Amova Asset Management
- Areca Capital
- Barings Singapore
- Fullerton Fund Management
- Manulife Investment Management
Mi Technovation will remain the controlling shareholder with about 73.7 per cent of shares.
Mi Material expects to commence trading at 2 pm on Oct 28, with an indicative listing date market capitalisation of S$891 million.
While the company does not have a fixed dividend policy, it noted that it intends to distribute dividends of at least 20 per cent of its net profit after tax for the period from its listing date to Dec 31 and for the year ending Dec 31, 2027.
The largest share of the indicative proceeds – about a third or S$55.9 million – will be used to establish a R&D laboratory in the US, which the company targets to commence operations in end-2028.
Also, 20 per cent or S$33.3 million will be used to refurbish and upgrade the equipment of its Taiwan production facilities, while another 16 per cent or S$27.9 million will be used to expand its production facilities in Malaysia.
Another 14 per cent or S$23 million will be used to establish its R&D lab in Singapore, while the remaining 17 per cent will be used for working capital and fees.
The Singapore R&D lab is expected to begin operations in Q2 2030, and will house 40 R&D and technical personnel to research advanced solder sphere technology.
“In addition, we aim to expand our R&D scope in Singapore by setting up structured collaborations with leading professors by early 2027 to conduct in-depth research in solder metallurgy, copper-based interconnect solutions and novel filler technologies,” noted the prospectus.
The equipment manufacturer is no stranger to the Republic, as it currently employs about 20 staff in Singapore in senior management and financial controller roles.
Oh Kuang Eng, executive director and group CEO of Malaysia-based Mi Technovation, told The Business Times in July that the decision to list in Singapore comes after considering factors such as access to talents and quality of researchers.
Mi Technovation acquired a 99 per cent stake in Taiwan-based Accurus Scientific in 2021 for RM271 million (US$66.3 million) and placed the company into its Singapore holding company Mi Material this year.
