Malaysia's second largest cleanroom gloves exporter, CE Technology, aims to raise RM12.48 million (US$3 million) from the listing on the Leading Entrepreneur Accelerator Platform (LEAP) Market to be utilised mainly for its expansion plans.
Managing director and CEO, Teoh Swee Sun, said: “We are setting up new cleanroom post-processing facilities which will more than double our monthly processing capacity from 20 million pieces to approximately 43 million pieces of gloves a month.”
In a statement today, CE Technology said it had received approval from the Malaysian stock exchange for the LEAP Market listing.
“The listing entails a placement of 52 million shares representing 15.02% of the company's enlarged share capital to selected sophisticated investors at an indicative price of 24 sen per share, raising a total of RM12.48 million. Based on the above, upon its debut on the LEAP Market, CE Technology is expected to have a market capitalisation of RM83.1 million ($20m),” it said.
Sun said the growing global demand for cleanroom gloves is driven by the expansion of high tech electronics industries such as wafer fabrication and life sciences industries such as biotechnology.
“As we strive to stay ahead of the competitive cleanroom glove industry, we are constantly innovating and developing new solutions and products for our customers,” Sun added.
Sun further explained that the company is allocating approximately 69% or RM8.5 million ($2m) of the listing proceeds to expand its processing capacity and enhance the R&D capabilities while the remaining will be used for working capital ($0.5m) and listing expenses ($0.4m).
Finally, he added that the company aimed to leverage on its R&D capabilities to develop and customise new cleanroom gloves, such as the extra-long and good electrostatic discharge (ESD) control cleanroom gloves used in both the high-end electronics industries as well as the life sciences industries.