Here's some news on Jurong - a major MXTR supplier. Key points: 1) MXTR accounts for 92% of Jurong's sales 2) Jurong is going public to raise capital, and 3) Jurong will be expanding it's manufacturing capacity by 41%.
UPDATE 1-Singapore's Jurong Tech eyes expansion
SINGAPORE, March 27 (Reuters) - Electronic contract manufacturer Jurong Technologies Industrial Corp Ltd said on Monday it planned to raise capacity at its Malaysian plant this year and open new facilities overseas over the next three years. The Singapore-based firm, a 60-percent owned subsidiary of SembCorp Marine Ltd <SCMN.SI>, is primarily involved in printed circuit board assembly.
Jurong Technologies' president, Lee Lok Fui, told a news conference at the launching of its initial public offering that its Malaysian plant capacity would be increased 41 percent to seven million units annually by the second quarter of the year.
Jurong Technologies said it hoped to raise net proceeds of S$17.3 million from the IPO.
It is offering 19.73 million new shares at S$0.20 each in the public tranche of its IPO for a listing on Singapore Exchange's main board.
It would be placing 69.12 million new shares at S$0.20 each with institutions, while another 9.8 million new shares would be set aside for employees at S$0.16 each.
An additional 12 million vendor shares would be placed out at S$0.20 each.
SembCorp Marine's stake in Jurong would be reduced to 26 percent at the end of the exercise, officials said. Jurong Technologies' main client is data storage provider Maxtor Corp <MXTR.O>, which accounted for 92 percent of its sales and 83 percent of gross profit in calendar 1999.
Other key clients include multimedia products maker Creative Technology <CREA.SI> <CREAF.O> and disk drive maker Western Digital Corporation <WDC.N>.
Jurong Technologies reported a net profit of S$4.27 million for the year ended December 31, 1999, up from S$2.40 million in the previous year.
OUB Bank <OUBM.SI> is the manager, underwriter and placement agent for the issue. The offer closes on April 4.
Its turnover rose to S$89.92 million in 1999 from S$79.86 million.
The company planned to open manufacturing plants in China, the Philippines and Thailand over the next three years, although Lee said details had not been worked out. |
