1. IPO Structure & Timeline

• Company: Oxford Innotech Berhad (OXB), incorporated in Malaysia.

• Listing: ACE Market of Bursa Malaysia Securities Berhad.

• IPO Price: RM0.29 per share.

• Shares Offered:

  • Public Issue (143,460,000 new shares):

    • 35,501,000 for Malaysian public.

    • 27,000,000 for eligible directors, employees, and contributors.

    • 80,959,000 via private placement to MITI-approved Bumiputera investors.

  • Offer for Sale (50,000,000 existing shares) via private placement to MITI-approved and selected investors.

• Subscription Timeline:

  • Applications open 26 June 2025.

  • Close 16 July 2025.

  • Balloting: 21 July 2025.

  • Allotment: 25 July 2025.

  • Listing: 29 July 2025.

2. Advisers & Key Parties

• Principal Adviser, Sponsor, Underwriter & Joint Placement Agent: Malacca Securities Sdn Bhd.

• Joint Placement Agent: Kenanga Investment Bank Berhad.

• Corporate Finance Adviser: WYNCORP Advisory Sdn Bhd.

• Auditors & Reporting Accountants: BDO PLT.

• Independent Market Research (IMR): Providence Strategic Partners Sdn Bhd.

3. Business Overview

• OXB is a precision engineering and manufacturing solutions provider, serving industries such as:

  • Electronics & semiconductors (storage systems, PCBs, and precision components).

  • Industrial and fabrication products.

  • Automation and robotics (AGVs, ASRS systems, IoT-enabled solutions).

  • Automotive and mobility components.

  • Mechanical and electronic security systems.

• Subsidiaries acquired (2022–2023) to consolidate capabilities:

  • CG Solutions, CG Manufacturing, Creative Gravity, EDM Holdings, and Oxford Bond.

• Operations are spread across Penang (Batu Kawan and Science Park factories), Sungai Petani (Kedah), and various rented facilities (including hostels and production sites).

4. Market & Customers

• Customer base: Mix of multinational corporations (MNCs) and large regional players, some listed on NASDAQ, New York Stock Exchange, Singapore Exchange, and Swiss Exchange.

• Notable disclosed customers:

  • Amphenol Group (NYSE-listed, electrical and fiber-optic systems).

  • CTRM Aero Composites (aerospace).

  • Robert Bosch Automotive Steering.

  • Siasun Group (robotics & automation, Shenzhen-listed).

  • SIBS Sdn Bhd (construction/industrial systems).

• Confidential clients include storage system manufacturers, PCB producers, and industrial solutions companies.

5. Suppliers

• Local and international mix, including:

  • Alumac Group (aluminium products).

  • Chung Yih Steel (steel products).

  • Dako Steel.

  • FD Precision.

  • Fexsoft (software & systems).

  • Others involved in hardware, metals, industrial parts, and automation.

6. Financial & Growth Highlights (FYE 2021–2024)

(Full figures are in the financial section – can extract detailed revenues, PAT, EPS if you want.)

• Company experienced steady growth post-consolidation (post-2022 acquisitions).

• Likely targeting expanded production capacity (Penang Science Park Factory 2 Phase 2) and technology investment (automation, IR4.0 tools).

• Dividends: OXB has a dividend policy (details in Section 3.10 and 12.5).

7. Future Plans & Business Strategy

• Expand automation and precision engineering capabilities.

• Construct Penang Science Park Factory 2 (Phase 2) (a three-storey plant for scaling operations).

• Strengthen R&D and IR4.0 technologies (AGV, RFID, AVI, CNC/CAD/CAM).

• Regional expansion into Southeast Asia and potentially India (via Customers G).

• Compliance focus: Maintain Shariah-compliant status for investor appeal.

8. Risks to Investors

• ACE Market Risks: Higher volatility and liquidity risks compared to Main Market.

• Business Risks:

  • Dependency on major MNC clients (concentration risk).

  • Workforce localization requirements (80% Malaysian citizens by Dec 2024 under MITI license).

  • Global economic uncertainty affecting electronics and industrial sectors.

  • Competition from local and international engineering firms.

• Operational Risks: Shortage of skilled talent, potential supply chain disruptions, and technology obsolescence.

9. Shariah Compliance

• OXB shares are Shariah-compliant (status valid until the next Shariah Advisory Council review in May/Nov 2025).

   

  Year (FYE)	Revenue (RM ‘000)	PAT (RM ‘000)	Gross Profit (RM ‘000)	Net Assets (RM ‘000)	EPS (sen)	Dividend Payout (%)	GP Margin (%)	PAT Margin (%)	P/E at IPO Price (RM0.29)
  2021	25133	7155	10291	15045	1.26	57.3	40.95	28.47
  2022	33582	8210	12841	23255	1.45	130.3	38.24	24.45
  2023	49533	8045	17754	74543	1.42	74.6	35.84	16.24
  2024	92905	15585	31264	80105	2.2	64.3	33.65	16.78	13.2

  • P/E at IPO Price (2024 basis): ~13.2x, below most Bursa-listed industrial peers (15–20x range).

  • Dividend Yield: Expected >4% at IPO price (based on payout policy).

    • OXB trades at a discounted multiple (~13× FY24 P/E) against Malaysian industrial peers (~14.6×) and is deeply undervalued vs precision machining peers (~26×).

    • Its Price/NTA of 1.7× post-IPO suggests reasonable upside if NAV increases.

    • Dividend yield based on past payouts offers steady income, with room to retain earnings for growth.

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    🧠 Analyst Sentiment & Forecasts

    Oversubscription Signals Market Enthusiasm

    • The IPO was oversubscribed 3.42× overall, with general public segment oversubscribed nearly six times, signaling strong retail and institutional demand ahead of listing on 29 July 2025

    Broker Forecasts & Target Prices

    • RHB Research: Fair value (FV) RM0.39 based on 18× FY26F P/E, implying upside vs IPO price of RM0.29

    • TA Research: Projected 13.2% decline in core net profit in FY25 (to RM13.3M) after FY24’s strong upsurge, followed by recovery in FY26–27 with earnings rising to ~RM14.6M and RM16.7M, respectively

    Key Takeaways:

    • Analysts view OXB as modestly undervalued at listing, with RHB assigning a higher valuation based on near-term earnings recovery and industry tailwinds.

    • TA Research expects earnings dip in FY25 due to a strong base year, but anticipates double-digit YoY growth thereafter supported by capacity expansion and healthy sector outlook.

    Should You Invest?

    • Attractive Valuation: P/E of ~13x vs peers (15–20x).

    • Strong growth trajectory: Revenue CAGR of ~55% (2021–2024).

    • Healthy dividends: Historically high payout, supporting >4% yield.

    • Shariah-compliant status: Broadens investor base.

    • Key Catalyst: Rising orders from electronics and automation sectors + factory expansion.

    Verdict: Suitable for medium-risk investors seeking growth + dividends. Expect volatility (ACE Market), but upside is supported by sector growth and reasonable valuation.

  Thank you