Meglob expanding into three countries

METRONIC Global Bhd (Meglob), which is targeting a Mesdaq market listing by early May, plans to expand its overseas operations, especially to China, Bangladesh and India.  

Group managing director Dr Ng Tek Che said the company was building the network and financial capacity to support rapid expansion overseas. 

“We aim to derive 60% of our earnings from overseas by the end of next year,” he said after the company's underwriting and placement agreement signing with Hwang-DBS Securities Bhd as the underwriter and placement agent for its listing exercise on Thursday. 

Ng said the company already had some small projects in Vietnam and China. 

Hwang-DBS deputy MD Alex Hwang signing the underwriting and placement agreements while Meglob executive chairman Tan Sri Kamaruzzaman Shariff looks on.

“Currently our overseas operations contribute less than 10% of the company's earnings but that will change in time,” he said, adding that the company had tendered for projects in China worth about RM30mil to RM40mil this year. 

Meglob is an investment holding company with subsidiaries involved in the intelligent building management system and integrated security system in Malaysia. 

For the fiscal year ended Dec 31, 2003, Meglob posted RM132mil in revenue and RM3.5mil in after-tax profit. It recently signed a MoU to acquire 51% stake for US$300,000 in Inforcon Beijing Pty Ltd, a China-based company with a similar business background, to spearhead its operations in China. 

Meglob's listing exercise involves the public issue of 71 million shares at an issue price of 21 sen per share. Of the total 71 million shares, 8 million will be allocated to the public, 8.5 million to eligible employees and associates, and 54.5 million shares for private placement. 

Meglob hopes to raise RM14.9mil from the listing exercise, of which RM5mil would be used to repay bank borrowings, RM2.6mil for office expansion, RM3mil for research and development, RM3.1mil for working capital and RM1.2mil for listing expenses. 

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