expansion plans

 
 

Singapore’s 2019 economic growth likely to be weaker but global economy ‘not headed for a crash’, says MAS chief

SINGAPORE, June 27 — The ongoing tension between the United States and China has stalled three of the world’s growth engines — trade, manufacturing and investments — which means the Singapore economy is likely to end the year weaker than…


CE Technology surges to 28 sen high this morning on market debut

PETALING JAYA: CE Technology Bhd was traded at a high of 28 sen this morning following its debut on the Leading Entrepreneur Accelerator Platform (LEAP) Market of Bursa Malaysia.

It had opened at 26 sen today, 2 sen above its offer price of 24 sen. At 10.59am, CE Technology was up to 28 sen on 110,500 shares traded.

The cleanroom gloves exporter expects to raise RM12.48 million from its LEAP Market listing to fund its expansion plans on the back of growing global demand of cleanroom gloves.

The company manufactures and sells nitrile and latex cleanroom gloves that are targeted for niche markets such as the high-end electronics and life sciences industries which require additional chemical and microbiological hazard protection. Cleanroom gloves are mainly used to control contamination and prevent electrostatic discharge.


US businesses beg to be left off Trump’s tariff list

JUNE 17 — Hundreds of US businesses from local bridal shops to multi-billion dollar retailers have submitted comments to the US Trade Representative’s Office opposing President Donald Trump’s plan to slap tariffs on another US$300 billion of…


XOX to raise up to RM66.28m to fund expansion plans

PETALING JAYA: XOX Bhd is looking to raise up to RM66.28 million from a proposed renounceable rights issue of irredeemable convertible preference shares (ICPS) with free detachable warrants (Warrants B).

In a filing with Bursa Malaysia, the company said it plans to undertake a rights issue of up to 2.65 billion new ICPS together with up to 662.81 million Warrants B on the basis of four ICPS with one free Warrant B for every two existing ordinary shares in XOX.

XOX intends to raise up to RM66.28 million from the proposed rights issue of ICPS with warrants which entails a minimum subscription level of 400 million ICPS together with 100 million Warrants B, based on illustrative issue price of 2.5 sen per ICPS and illustrative exercise price of 6 sen per warrant.

The minimum subscription level will be met via a written undertaking from Key Alliance Group Bhd, a substantial shareholder of the company, to apply and subscribe in full for its entitlement under the proposed rights issue of ICPS with warrants.

Under minimum scenario, the RM10 million gross proceeds raised will be used to fund its eSIM expansion plan and estimated expenses for the proposals. The eSIM expansion plan includes upgrading of hardware, software costs and marketing expenses.

Under the maximum scenario, the RM66.28 million gross proceeds raised will be used to fund the eSIM expansion plan, expansion of XOX’s e-wallet function, working capital and estimated expenses for the proposals.

XOX’s working capital includes maintenance cost of mobile and digital network infrastructure as well as operating and administrative expenses such as staff cost, utilities, rental, transportation and upkeep of office.

The ICPS will have a tenure of 10 years commencing from and inclusive of the issue date of the ICPS while the tenure of the Warrants B is three years from the date of issuance.


Research houses reiterate ‘buy’ call for Kossan on expansion plans

KUALA LUMPUR, May 27 — MIDF Research has reiterated its “Buy” call on Kossan Rubber Industries Bhd on anticipation of earnings growth for the glove maker. The projection of better earnings was supported by high demands for glove and…


Bukalapak: One of Indonesia’s largest online marketplaces is coming to Malaysia (VIDEO)

KUALA LUMPUR, May 25 ― Bukalapak, one of Indonesia’s largest consumer-to-consumer online marketplaces is getting ready to expand into Malaysia and throughout the region with the launch of its BukaGlobal app. The company is expected to make an…


CE Technology to raise RM12m from LEAP listing

PETALING JAYA: Cleanroom gloves exporter CE Technology Bhd expects to raise RM12.48 million from its LEAP Market listing on Bursa Malaysia to fund its expansion plans on the back of growing global demand of cleanroom gloves.

The company manufactures and sells nitrile and latex cleanroom gloves that are targeted for niche markets such as the high-end electronics and life sciences industries which require additional chemical and microbiological hazard protection. Cleanroom gloves are mainly used to control contamination and prevent electrostatic discharge.

Based on the audited financial statements for the financial year ended July 31, 2018, more than 95% of its products are exported overseas to Asean, Europe, the US, China and Japan.

CE Technology plans to allocate approximately 69% or RM8.5 million of the listing proceeds to expand its processing capacity and enhance research and development capabilities.

“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,” said its managing director and CEO Teoh Swee Sun.

The company also plans to leverage its R&D capabilities to develop and customise new cleanroom gloves, such as the extra-long and good ESD control cleanroom gloves used in both the high-end electronics industries as well as the life sciences industries.

CE Technology has obtained approval from Bursa Malaysia for the listing exercise, which 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.


MIDF maintains ‘neutral’ call on Axiata-Telenor mega merger

KUALA LUMPUR, May 7 ― MIDF Research has maintained its “neutral” call on the Axiata Group Bhd and Telenor ASA mega-merger, as having a sizeable presence in the telecommunications industry would provide the group with certain competitive…


M’sian manufacturing PMI edges up to 7-month high

PETALING JAYA: Malaysia’s manufacturing Purchasing Managers’ Index (PMI) rose to seven-month high in April, driven by growth in export orders.

The headline Nikkei Malaysia Manufacturing PMI stood at 49.4 in April compared with 47.2 in March, the highest since September 2018.

IHS Markit, which compiles the survey, said the rise in the PMI is broadly indicative of gross domestic product (GDP) growth accelerating to just over 5% according to historical comparisons.

“Key to the upturn in the PMI was a renewed improvement in foreign demand in April, which had weakened business trends in prior months. New export orders rose for the first time in five months. Higher workloads from overseas sources were attributed to business wins in Europe, the US and countries in Asia such as Singapore and Japan.”

It said the increase in export sales helped drive the overall new orders index up by some 3.6 points to its highest since last September, its largest rise for ten months.

“Pressure on manufacturers to ease back on capacity expansion likewise moderated, with the output index jumping 1.9 points (its largest rise for almost one-and-a-half years), reaching its highest since last October.”

In line with the more positive outlook, IHS Markit noted that manufacturers stepped up their hiring, with employment increasing in April at the fastest pace in seven months.

“Investment into new machinery and plant expansions reportedly prompted greater recruitment.”

It added that business confidence for the year-ahead outlook rose to its highest for five-and-a-half years, supporting improved employment growth as firms stepped up expansion plans.

Inflationary pressures remained subdued, albeit with input costs lifting higher for the first time this year.

“April saw the picture of Malaysia’s manufacturing economy brighten considerably, fuelled by the first improvement in export demand since last November. The headline PMI showed its largest monthly rise for nearly one and a half years, suggesting manufacturing should help drive faster economic growth to just over 5% at the start of the second quarter, with the trade drag easing compared to prior months,” said IHS chief business economist Chris Williamson.

“The survey also brought signs that firms have an improved appetite to expand capacity, taking on staff in greater numbers as business confidence in the outlook jumped to its highest for over five years, adding to hopes that the slowdown has bottomed out. Much will, of course, depend on the external environment, and a sustained upswing will be contingent on improving global trade flows,” he added.


New deal allows Chinese firms to use Singapore as launchpad into Asean

BEIJING, April 29 — Singapore’s stock exchange operator and its third largest bank have entered into an agreement with China’s national businesses association to help Chinese companies expand into markets within the Association of South-east…