Malaysia’s Unique Fire aims to raise RM21.8m in Ace Market listing
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Fire protection system and equipment assembler Unique Fire Holdings hopes to raise RM21.78 million (S$6.87 million) from its initial public offering (IPO) on Bursa Malaysia’s Ace Market this August.
The IPO involves an offer for sale of up to 30 million existing shares and a public issue of 83.75 million new shares, based on the offer price of RM0.26 per share.
After the listing on Aug 5 this year, the company is expected to have a market capitalisation of RM104 million, said managing director Liew Sen Hoi at the prospectus launch on Wednesday (Jun 29).
Unique Fire was started in 1997 as a distributor of fire protection systems and equipment. It later grew to become an assembler and manufacturer of active fire protection and suppression systems, equipment and accessories for the built environment.
It currently has a customer base of around 1,700, with the majority from the construction and property development industries.
About RM6 million of the proceeds raised will go towards expanding its coverage in Penang and Johor, while RM2.5 million will be used to expand its manufacturing facilities.
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Another RM5.3 million will be for expanding its operational capabilities, RM4.58 million for working capital, and the remaining RM3.4 million for listing expenses.
“Our cylinder manufacturing line has been experiencing high utilisation rates. We continue to strategise and strive to cater for the unrelenting demand for fire protection systems, which are critical mandatory products that are required in the built environment,” said Liew in a statement on Jun 29.
Unique Fire reported a profit after tax of RM5.32 million in the financial year ended Mar 31, 2021, compared to RM7.48 million in FY2020.
Revenue for FY2021 stood at RM63.44 million, compared to RM76.19 million in FY2020. Its profit-after-tax margin also declined to 8.39 per cent in FY2021, from 9.82 per cent in FY2020. For the 9-month period ended Dec 31, 2021, it recorded a profit-after-tax of RM4.41 million with revenue of RM53.87 million, giving it a profit-after-tax margin of 8.19 per cent.
Liew said rising steel prices and increasing costs for sales and marketing purposes, such as discounts given to customers, were the main reasons that affected the profit margin.
Applications for the public issue portion of the IPO are now open and will close at 5pm on Jul 22.
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