KUALA LUMPUR: Semiconductor automated material handling system (AMHS) solutions provider Stratus Global Holdings Bhd has signed an underwriting agreement with UOB Kay Hian (M) Sdn Bhd ahead of its proposed listing on the Main Market of Bursa Malaysia.

According to its prospectus exposure, the initial public offering (IPO) comprises 356.25 million new shares, representing 28.5% of the company's enlarged issued share capital.

Of the total, 25 million shares will be made available to the Malaysian public, while 30 million shares will be reserved for eligible directors, employees and persons who have contributed to the group's success.

A further 145 million shares will be placed out to identified institutional and selected investors, while 156.25 million shares will be allocated to identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry.

Under the underwriting agreement, UOB Kay Hian will underwrite 55 million shares comprising the public portion and pink form allocation.

The IPO does not involve any offer for sale by existing shareholders, with proceeds earmarked for business expansion, research and development, working capital and listing expenses.

Stratus Global plans to establish a new manufacturing facility in Penang with a built-up area of at least 170,000 sq ft to support higher production volumes and undertake multiple projects concurrently.

The group also intends to expand its overseas presence through sales and engineering support offices in Japan, Taiwan, Germany and the United States.

Executive director/chief executive officer Ryo Narisawa said the underwriting agreement marked an important step towards the company's listing exercise.

"The signing of the underwriting agreement marks a key milestone for Stratus Global as we progress closer towards our listing on the Main Market of Bursa Securities.

"Over the years, we have built a strong track record and reputation in delivering cleanroom AMHS solutions for the semiconductor industry.

“Building on this foundation, our IPO will support the next phase of our group's expansion, as we strengthen our execution capacity through facility expansion, enhance our R&D capabilities and grow our overseas market presence to better serve customers across key global semiconductor hubs," he said.

Ryo said the group sees long-term opportunities in semiconductor automation as manufacturers increasingly adopt automation to improve efficiency and reduce reliance on manual processes.

"As semiconductor manufacturers continue to focus on reducing human error, optimising cleanroom space utilisation and managing rising labour costs through automation, we believe Stratus Global is well-positioned to capture long-term opportunities within the semiconductor automation value chain," he added.

Meanwhile, UOB Kay Hian chief executive officer David Lim said Stratus Global has established a position in a specialised segment of semiconductor manufacturing through its capabilities in the design, fabrication, installation and commissioning of cleanroom AMHS solutions.