MClean Technologies Bhd expects its business to grow by double digits this year as rising global demand for computers would boost the hard disk drive (HDD) industry.
Chief executive officer Bert Chow said based on market research, the HDD industry grows by about 10 to 20 per cent every year. "We expect our business to grow in tandem with the high demand in hard disk drive," he said after the launch of its prospectus here yesterday.
The company, which provides clean-room facilities for HDD main component suppliers and manufacturers, is the second largest player in China with about 26 per cent of the market. "Currently, we have about 37 per cent of the industry's market share in Singapore which put us as the leader there," Chow said. It counts firms like Seagate and Western Digital as clients.
The company aims to raise RM8 million from its initial public offering (IPO), involving the public issue of 15.4 million new shares of 25 sen each, priced at 52 sen each. Some 41 per cent of the money will be used for working capital, 30 per cent for capital expenditure and the rest for listing expenses.
For the 10 months ended October 31 2010, the company made a net profit of RM5.9 million, much better than a loss in the same period in 2009. MClean, which also provides plastic injection moulding components for other industries, like automotive and electronics, is looking at opportunities to expand its business in Malaysia and Thailand.
It's IPO application closes on April 28. You still have 2 more days to subscribe. It is expected to be listed on Bursa Malaysia's ACE Market on May 10.
The business seems straight forward. So are you subscribing?
In view of the hot demand of IPO subscription, perhaps this is just another hot cake to be oversubscribed by the public. By looking at it's past year result and IPO price, I'm not comfortable to subscribe it. I would let it goes this time. I'm looking forward the coming of XoX IPO.
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