Coraza to ride on semiconductor upcycle
20 Jan 2022
Coraza Integrated Technology Bhd (Coraza) is set to ride on the semiconductor boom as there are no signs of a slowdown in spending or expansion by its customers, despite the uncertainties brought about by the COVID-19 pandemic.
Managing director Lim Teik Hoe believes that COVID-19 is going to have a positive impact on the semiconductor industry in the long run, with the push towards digitalisation and the adoption of new technologies.
“Coraza provides integrated engineering support to its customers, many of whom are large multi-national corporations who are market leaders in their respective fields, from high growth industries such as semiconductor, instrumentation, life science and medical devices, telecommunications, aerospace, and electrical and electronics.
“Over the last two years, the company has seen increasing enquiries and orders from its existing and potential customers across all market sectors, especially the semiconductor sector, both locally and from their global headquarters,” he said in a statement today.
On the company’s prospects, Lim said Coraza has planned to double its manufacturing floor space to meet the growing demand for its services.
The company will first extend its existing factory to house new machines — the extension is expected to be completed by this month.
Apart from the extension, Coraza intends to construct a new factory adjacent to its existing factory in Nibong Tebal, Penang to expand its production capacity and capabilities, as well as enable the company to provide new services (provision of finishing services) to customers in the future.
The construction of the new factory will be carried out in three phases, and is targeted to be completed by December 2023.
“Looking ahead, we are positive of our prospects as we continue to strengthen our competencies and competitiveness across the core business segments we operate in,” he added.
The company made its debut on the ACE Market of Bursa Securities today, raising RM33.0 million from its public issue of 117.8 million new shares at an issue price of 28 sen per share.
At the opening bell today, Coraza share price more than doubled at 70 sen from its initial public offering (IPO) price of 28 sen.
The listing exercise also includes an offer for sale of 21.4 million existing shares to selected investors by way of private placements.
Based on the enlarged share capital of 428.3 million shares, Coraza’s market capitalisation upon listing would be RM119.9 million.