Listing Detail:
Listing Sought: ACE Market
Issue Price: RM 0.80
Par Value: RM 0.10

Dates:
Offer Period Open: 28 Apr 16
Offer Period Close: 06 May 16
Tentative listing date: 18 May 16

Number of shares:
Public Issue: 78,000,000
Offer for Sale: 23,000,000
Private Placement: 71,900,000

Stock Code: SALUTE

Official Announcement

INITIAL PUBLIC OFFERING OF 101,000,000 ORDINARY SHARES OF RM0.10 EACH IN SALUTICA BERHAD (FORMERLY KNOWN AS BLUE OCEAN GENIUS SDN BHD) ("SALUTICA" OR THE "COMPANY") ("SHARE(S)") IN CONJUNCTION WITH THE LISTING OF AND QUOTATION FOR THE ENTIRE ENLARGED ISSUED AND PAID-UP ORDINARY SHARE CAPITAL OF SALUTICA ON THE ACE MARKET OF BURSA MALAYSIA SECURITIES BERHAD COMPRISING:-

(A) A PUBLIC ISSUE OF 78,000,000 NEW SHARES ("ISSUE SHARE(S)") IN THE FOLLOWING MANNER:-

(I) 19,400,000 ISSUE SHARES MADE AVAILABLE FOR APPLICATION BY THE MALAYSIAN PUBLIC;

(II) 9,700,000 ISSUE SHARES MADE AVAILABLE FOR APPLICATION BY OUR ELIGIBLE DIRECTORS AND EMPLOYEES AS WELL AS PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF SALUTICA AND ITS SUBSIDIARY;

(III) 10,100,000 ISSUE SHARES MADE AVAILABLE FOR APPLICATION BY WAY OF PRIVATE PLACEMENT TO INSTITUTIONAL AND IDENTIFIED INVESTORS; AND

(IV) 38,800,000 ISSUE SHARES MADE AVAILABLE FOR APPLICATION BY WAY OF PRIVATE PLACEMENT TO IDENTIFIED BUMIPUTERA INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY

(B) AN OFFER FOR SALE OF 23,000,000 EXISTING SHARES ("OFFER SHARE(S)"), MADE AVAILABLE FOR APPLICATION BY WAY OF PRIVATE PLACEMENT TO INSTITUTIONAL AND IDENTIFIED INVESTORS AT AN IPO PRICE OF RM0.80 PER ISSUE SHARE/OFFER SHARE, PAYABLE IN FULL UPON APPLICATION.

Company Overview

Salutica Berhad, an investment holding company, engages in the design, development, manufacture, and sale of consumer electronic products worldwide. It develops Bluetooth related devices, such as audio headsets, smartwatches, and car kits.

The company is also involved in the product conceptualization, design, development, manufacture, marketing, and sale of automotive accessories and consumer electronics devices, including Bluetooth-enabled TMPS and electronic sensors, tracking devices, and beacon transmitters under its FOBO brand.

In addition, it offers other electronics, and precision parts and components. The company serves multinational electronics and mobile communication device corporations.

Salutica Berhad sells its products through e-commerce sales on its Website, third party e-commerce platforms, and retail outlets. The company was founded in 1990 and is headquartered in Ipoh, Malaysia. Salutica Berhad is a subsidiary of Blue Ocean Enlightenment Sdn. Bhd.

3 Jalan Zarib 6, Kawasan Perindustrian Zarib,
31500 Lahat, Ipoh, Perak, Malaysia

Telephone: +605 320 6800
Fax: +605 322 2029
Web:  http://www.salutica.com

News: Bluetooth device maker Salutica eyes ACE Market

Salutica Bhd, an original design manufacturer of electronic components, is looking to list on the ACE Market of Bursa Malaysia with an initial public offering (IPO) of 101 million shares.

Salutica’s subsidiary Salutica Allied Solutions Sdn Bhd markets its own products including Fobo Tire, a tyre pressure monitoring system that uses Bluetooth technology to monitor tyre pressure.

In a draft prospectus exposure on the Securities Commission website, the company said the IPO comprises a public issue of 78 million new ordinary shares of 10 sen each in Salutica and offer for sale of 23 million existing Salutica shares.

The 78 million shares represents 20.1% of the enlarged issued and paid-up share capital of the company, of which 19.4 million will be issued to the Malaysian public, 9.7 million for eligible directors and employees as well as persons who have contributed to the success of the group, 10.1 million by way of private placement to institutional and selected investors and 38.8 million by way of private placement to identified Bumiputra investors.

The 23 million offer shares represents 5.9% of the enlarged and paid-up share capital of the company, for application by way of private placement to institutional and selected investors.

The gross proceeds from the public issue are expected to be utilised for repayment of bank borrowing (26.9%), capital expenditure (capex) (27.5%), research and development expenditure (15%), working capital (23.6%) and estimated listing expenses (7%).

In terms of capex, the group intends to acquire new machinery and equipment for its operations. It also intends to upgrade its IT infrastructure. “The purchase of new machinery and equipment, as well as the upgrade of our manufacturing facilities will enable us to increase our capacity, expand our product range, replace old machinery and improve our testing capabilities,” it said.

Salutica intends to adopt a “stable and sustainable” dividend policy after listing and intends to have a dividend payout of not less than 30% of its annual net profit attributable to shareholders.

For the financial year ended June 30, 2015, the group posted a net profit of RM27.41 million and revenue of RM192.52 million compared with net profit of RM60.12 million and revenue of RM204.13 million a year ago.

For the financial year ended June 30, 2014, Salutica Allied Solutions posted a net profit of RM23.75 million and revenue of RM234.21 million compared with a net loss of RM15.03 million and revenue of RM78.56 million the year before.

Salutica’s results largely reflect the financial performance of Salutica Allied, its sole operating subsidiary. The company completed a management buyout of Salutica Allied in September 2013, thus its group results for financial year ended June 30, 2014 (FY14) captures the financial performance of Salutica Allied for a 10-month period from Sept 4, 2013.

The last date of exposure for the IPO prospectus is Feb 16. RHB Investment Bank Bhd is the adviser.

-- The Sun Daily