AIM S$27.9M from IPO
AIM S$27.9M from IPO
Dow Jones, Singapore
Singapore's Advanced Integrated Manufacturing Corp., or AIM, expects to raise about S$27.9 million (US$16.8 million) in net proceeds from its initial public offering on Monday.
The Singapore-incorporated company with operations in Singapore, Indonesia and China, is offering investors 171 million shares at 20 Singapore cents each, it said in a prospectus registered with the Monetary Authority of Singapore.
AIM is an integrated provider of electronic manufacturing services, specializing in medium to high-end applications in industries like aerospace-avionics, medical sciences, electronic- data storage, semiconductors and telecommunication fiber-optics. It counts the Honeywell Group, PerkinElmer and Agilent Technologies -- all original equipment manufacturers -- as customers.
AIM is offering 10 million shares to the public and 161 million placement shares, which include five million shares reserved for directors, staff and business associates.
The IPO shares, which include 150 million new shares and 21 million vendor shares, represent about 26 percent of the company's enlarged share capital.
AIM posted a net profit of S$8.3 million for the six months ended June 30 last year on revenue of S$30.9 million.
The prospectus states that for fiscal 2004, AIM's directors intend to recommend a dividend of not less than 30 percent of audited net profit attributable to shareholders. AIM expects 2004 fiscal year net profit attributable to shareholders to be S$12 million.
The company plans to use S$4 million of its IPO proceeds to set up a new plant in Bintan, Indonesia, S$8 million to buy equipment for its plant in China, and about S$2 million to fund R&D to build capabilities in product and process design.
AIM's IPO offer is at a price/earnings multiple of 16.13 times its historical earnings per share of 1.24 Singapore cents for the 2003 fiscal year.
The company's offer, led by UOB Asia Ltd., closes May 24 and its shares will begin trading on the Singapore Exchange May 26.