{"id":40951,"date":"2019-05-14T10:47:56","date_gmt":"2019-05-14T02:47:56","guid":{"rendered":"https:\/\/investpenang.gov.my\/investpenang-sees-oppoertunities-in-the-us-china-trade-war-2\/"},"modified":"2025-12-02T17:16:55","modified_gmt":"2025-12-02T09:16:55","slug":"investpenang-sees-oppoertunities-in-the-us-china-trade-war-2","status":"publish","type":"post","link":"https:\/\/investpenang.gov.my\/zh-hans\/investpenang-sees-oppoertunities-in-the-us-china-trade-war-2\/","title":{"rendered":"Greatech seeks to raise RM73mil from IPO"},"content":{"rendered":"

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Greatech seeks to raise RM73mil from IPO<\/h1>\n

[\/vc_column_text][vc_separator type=”normal” el_class=”red-separator” color=”#ee4023″ transparency=”1″ thickness=”2″ up=”15″ down=”15″][vc_column_text css=”” el_class=”white-text”]<\/p>\n

14 May 2019<\/p>\n

[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”grid” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1703764846254{background-color: #f3f5f8 !important;}” z_index=””][vc_column el_class=”fade-in animate”][vc_empty_space height=”120px” el_class=”height-x120″][vc_row_inner row_type=”row” type=”grid” text_align=”left” css_animation=””][vc_column_inner][vc_single_image image=”28673″ img_size=”full” qode_css_animation=”” el_class=”single-featured-image”][\/vc_column_inner][\/vc_row_inner][vc_empty_space height=”60px” el_class=”height-x60″][vc_row_inner row_type=”row” type=”grid” text_align=”left” css_animation=”” el_class=”content-row”][vc_column_inner][vc_column_text]KUALA LUMPUR: Greatech Technology Bhd is aiming to raise RM73.05mil from its initial public offering (IPO), alongside plans to expand its operations to the United States and China.<\/p>\n

The Penang-based industrial automation solutions provider is planning to take their expertise and technology to the Silicon Valley and Shanghai.<\/p>\n

Executive director and chief executive officer Tan Eng Kee said the company is also looking to explore areas such as the east coast of the US as well as Arizona.<\/p>\n

\u201cUS is happening.<\/p>\n

\u201cWhatever new technology there is comes from there and I believe we need to put our foot in the US.<\/p>\n

\u201cIf you talk about the trade war, looking at the unemployment rate in the US, it is still much better than other regions.<\/strong><\/p>\n

\u201cWe are going to open an office and have some engineering applications for the US market.<\/p>\n

\u201cA small portion (of the proceeds) will be for China where we\u2019ll incorporate a company in Shanghai,\u201d he told a press conference after the launch of Greatech\u2019s prospectus here yesterday.<\/p>\n

The expansion plans are expected to commence in the second half of the year.<\/p>\n

Out of the RM73.05mil that it plans to raise, RM18mil will be for business expansion, development and marketing.<\/p>\n

A huge chunk of this will be parked in the United States.<\/p>\n

Meanwhile, the other proceeds will be RM5mil for capital expenditure, RM36.55mil for working capital, RM8.5mil for the repayment of bank borrowings and IPO expenses.<\/p>\n

Greatech is slated for listing on Bursa Malaysia\u2019s ACE Market on June 13 with a market capitalisation of RM381.86mil.<\/p>\n

The IPO will see an offering of 119.75 million new ordinary shares, out of which 18.78 million are open to the public, with the IPO price of 61 sen each.<\/p>\n

\u201cWe discovered a niche in the process automation segment and focussed on it and this has proven to be fruitful for our group.<\/p>\n

\u201cWe are well positioned to benefit from increasing adoption of automation worldwide to achieve higher productivity and greater efficiency.<\/p>\n

\u201cDiversification into new sectors such as the battery segment for energy-efficient vehicles (EEV) is also of essence for us to remain competitive in the global marketplace,\u201d Tan said.<\/strong><\/p>\n

Greatech recorded a revenue of RM219.58mil last year, an increase of RM93.91mil from 2017.<\/p>\n

The company\u2019s revenue in 2016 was only RM22.7mil.<\/p>\n

The significant increase in 2017 and 2018 was mainly due to its production line systems, which contributed 71% and 84% respectively.<\/p>\n

The profit after tax (PAT) has been increasing since 2015 but its PAT margin is on a decreasing trend since 2016 until last year at 26%, 20% and 14%.<\/p>\n

Tan said the company is targeting a 10% to 15% growth in revenue this year.<\/p>\n

The company\u2019s order book as at April 15 was RM91mil.<\/p>\n

Some 90% of the company\u2019s products are exported, mostly to American companies.<\/p>\n

Some are exported directly to the US itself in places such as Buffalo and Ohio.<\/p>\n

Greatech\u2019s major share of customers are from Vietnam, US and Malaysia. In 2017, 40% of its clients are from Vietnam.<\/p>\n

This increased to 63% last year.<\/p>\n

Asked if it would consider opening facilities in Vietnam, Tan said the company\u2019s focus on its manufacturing hub will still be in Penang.<\/strong><\/p>\n

This is due to its advantages compared to other countries in terms of talents and costs.<\/p>\n

It currently has around 120 automation engineers in Penang.<\/p>\n

The second half this year will see Greatech\u2019s new Bayan Lepas facility becoming operational while construction of its Batu Kawan facilities will commence.<\/p>\n

Source: The Star<\/a><\/p>\n

Photo Credit: The Star[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_empty_space height=”120px” el_class=”height-x120″][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

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14<\/h2>\n
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Tue<\/p>\n

May \u201819<\/p>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"author":1,"featured_media":28673,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[316],"tags":[],"news_year":[271],"news_month":[223],"local_insights_alphabet":[],"acf":[],"_links":{"self":[{"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/posts\/40951"}],"collection":[{"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/comments?post=40951"}],"version-history":[{"count":2,"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/posts\/40951\/revisions"}],"predecessor-version":[{"id":40964,"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/posts\/40951\/revisions\/40964"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/media\/28673"}],"wp:attachment":[{"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/media?parent=40951"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/categories?post=40951"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/tags?post=40951"},{"taxonomy":"news_year","embeddable":true,"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/news_year?post=40951"},{"taxonomy":"news_month","embeddable":true,"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/news_month?post=40951"},{"taxonomy":"local_insights_alphabet","embeddable":true,"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/local_insights_alphabet?post=40951"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}