KUALA LUMPUR: Distributor of stainless steel sanitary valves, tubes and fittings, Minox International Group Bhd made its debut on the ACE Market of Bursa Malaysia Securities today.

The share price of Minox opened at 31.5 sen, representing a premium of 26% over the issue price of 25 sen, with an opening volume of 27,729,300 shares.

Managing director Cheong Chee Son said, “Today is a momentous day in Minox’s corporate history, opening a new chapter for us as a listed entity after being in operation for more than two decades. I am also truly humbled by the warm reception we received from investors. Backed by this confidence, we are motivated and energised to forge ahead and execute our multi-pronged growth strategy.”

He said the RM22.5 million fresh capital raised through the initial public offering (IPO) puts them on a strong footing to implement their plans and they will introduce new vacuum fittings and valves tailored for semiconductor production lines and construct a fourth warehouse in Puchong to cater for higher sales volume.

“Beyond local shore, we are setting up a new warehouse in Singapore to store our new vacuum fittings and valves for the semiconductor industry as well as to store inventories that cater for customers in Singapore and abroad. These calculated steps shall help deepen our presence in the semiconductor industry and enhance our inventory capacity as we continue to expand our business,” he added.

Moving forward, he said they are confident that the sanitary valves and fittings industry will continue to flourish driven by the rising population.

“As the population expands, so does the demand for food and beverage (F&B), pharmaceutical products, and advanced electronics, all of which bode well for our business,” Cheong added.

The independent market research by Protégé Associates Sdn Bhd projects the sanitary valves and fittings industry in the Asia Pacific to expand by a compound annual growth rate of 6.1% to reach US$825.6 million (RM3.9 billion) in 2027 from US$643 million in 2023.

Meanwhile, based on Minox’s latest financial results for the first six months ended June 30, 2023 (H1’23), the company achieved a net profit of RM4 million on the back of RM26.1 million in revenue. 92.7% of revenue was generated from sales to the F&B industry.

Geographically, domestic sales were 26.2% while export sales contributed 73.8% of turnover, with Indonesia being the largest market at 41.1%, followed by Singapore (20.8%), Thailand (7.5%) and others (4.4%).

The company recorded a gross profit (GP) amounted to RM41 million during 1HFY2023, translating into a healthy GP margin of 53.8%.

The company has raised a total of RM22.5 million from the IPO, of which 57.9% of the proceeds to be utilised towards business expansion. The company has allocated RM4 million (17.8%) for product development and deployment; RM4 million (17.8%) for the construction of Warehouse 4; and RM5 million (22.3%) for the setting up of a new warehouse in Singapore. The remaining proceeds are earmarked for repayment of bank borrowings, general working capital, and estimated listing expenses.