Inari IPO debuts on Bursa Malaysia, new packaging facility planned

July 21, 2011 — Inari Berhad, contract semiconductor packaging and test house, was listed on the ACE Market of the Bursa Malaysia Securities Berhad (Bursa Malaysia) on July 19, 2011, Stock Code: 0166, in an initial public offering (IPO) that was oversubscribed by 10.42 times.

At an issue price of 38 sen/share, Inari’s IPO raised RM31.54 million in proceeds for the Group. Listing on Bursa Malaysia was "crucial" to Inari’s expansion, said Dr. Tan Seng Chuan, managing director, Inari Berhad. Of the proceeds, RM17.5 million will be allocated for capital expenditure, including to build a new assembly and manufacturing facility in Penang by Q1 2012. RM7.6 million will be for repayment of debt, RM4.5 million for general working capital, and RM2.0 million to defray listing expenses.

Inari received 6,308 applications for 114.2 million shares with a total value of RM43.4 million for its public tranche of 10.0 million shares. Inari’s IPO entailed the public issue of 83.0 million new ordinary shares, of which 10.0 million were available to the Malaysian public via balloting, 10.4 million shares for eligible directors, employees and business associates of the Group and its subsidiaries, 26.1 million shares for private placement to selected investors, and 36.5 million shares for Bumiputera investors approved by the Ministry of International Trade and Industry.

From FY2007 to FY2010, Inari recorded a 91.5% compound annual growth rate (CAGR) in group revenue to RM154.8 million, and 202.9% CAGR in group net profits to RM15.2 million over the same period. The company recently (July 15) appointed a new CEO, Lau Kean Cheon, who started in the industry with Intel Penang, followed by KESP Sdn Bhd Penang, Globetronics Technology Berhad Group, and Iso Technology Sdn Bhd (wholly owned Globetronics subsidiary).

M&A Securities Sdn Bhd is the adviser, underwriter, sponsor, and placement agent for Inari’s IPO.

Inari provides end-to-end and vertically integrated semiconductor packaging services for chips used in RF mobile technology and devices. Learn more at www.Inariberhad.com.

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