Company Background

The Company was incorporated in Malaysia under the Act on 18 July 2022 as a private limited company under the name of Minox International Group Sdn Bhd. On 16 December 2022, the Company was converted into a public limited company and adopted the present name.

The Company is principally an investment holding company. There has been no material change in the manner in which it conducts its business or activities since its incorporation and up to LPD. The Group structure as at LPD is as follows:

Through the subsidiaries, the company principally engaged in the distribution of stainless steel sanitary valves, tubes & fittings, installation components & equipment, rubber hoses under the “MINOX®” brand and other related products. The company has a comprehensive range of products, which ranges from different types and specifications (i.e. size, dimension and material grade) that cater to its industrial end-customers’ diverse requirements.

Use of proceeds

1. Product development and deployment - 17.8% (within 24 months)
2. Construction of Warehouse 4 - 17.8% (within 24 months)
3. Setting up a new warehouse in Singapore - 22.3% （within 36 months)
4. Repayment of bank borrowings - 20% (within 6 months)
5. General working capital - 7.0% (within 12 months)
6. Estimated listing expenses - 15.1% (within 1 month)

Product development and deployment - 17.8% (within 24 months)

The company intends to introduce different types of vacuum fittings and valves for the semiconductor industry. These new vacuum fittings and valves to be developed and deployed for use in the semiconductor industry include fittings (unions and flange connections) and valves (ball valves)

As at LPD, the company has identified 2 new third-party manufacturers in China to manufacture the new vacuum fittings and valves. The company allocated RM4.00 million of the proceeds for the development and deployment of the new vacuum fittings and valves, details of which are as follows:

Construction of Warehouse 4 - 17.8% (within 24 months)

The company has allocated RM4.00 million of the proceeds for the construction of Warehouse 4, and the remaining RM0.85 million will be funded via internally generated funds and/or bank borrowings to be obtained by the Group. The approximate construction costs for Warehouse 4 are as follows:

The indicative timeline for the construction of Warehouse 4 is as follows:

Setting up a new warehouse in Singapore - 22.3% （within 36 months)

The company intends to allocate approximately RM5.01 million of the proceeds as set-up costs for its new warehouse in Singapore, details of which are as follows:

With this new warehouse in Singapore, the company will be able to benefit from lower average cost per unit of sanitary products delivered to overseas customers as Singapore has a number of free trade agreements that aims to reduce or eliminate barriers to trade, such as tariffs and other trade barriers on all originating goods. This will in return improve the financial performance.

Repayment of bank borrowings - 20% (within 6 months)

The company has allocated RM4.50 million to partially repay the Group’s outstanding borrowings. The details of which are set out as follows:

General working capital - 7.0% (within 12 months)

A total of RM1.59 million of the proceeds has been earmarked to replenish the existing inventories to support the business growth

Business model

The Group is principally engaged in the distribution of stainless steel sanitary valves, tubes & fittings, installation components & equipment, rubber hoses under the “MINOX®” brand and other related products. The company has a comprehensive range of products, which ranges from different types and specifications (i.e. size, dimension and material grade) that cater to the industrial end-customers' diverse requirements. The company supplies the products to industrial end customers either directly, or indirectly via project consultants or contractors who are responsible for the design, development and installation of the production lines. Some of the industrial end-customers have their own in-house engineering team to design and install its production lines, and will directly purchase products required or replacement parts from them.

The following diagram illustrates the Group’s business model:

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