Kuala Lumpur, 08 September 2010 – Kuala Lumpur, 8 September 2010 – In conjunction with its proposed listing on the ACE Market of Bursa Malaysia Securities Berhad, Malaysian Genomics Resource Centre Berhad (“MGRC” or the “Company”), a leading contract genomics services player, launched its initial public offer (“IPO”) prospectus today.
MGRC’s IPO entails a public issue of 17.1 million new ordinary shares and offer for sale of 2.0 million existing ordinary shares at an issue/ offer price of RM 1.08 per share. Of the 19.1 million total shares, 16.5 million shares were earmarked for private placement, 2.0 million shares will be made available via balloting and 0.6 million shares were offered to eligible directors.
Speaking at the prospectus launching ceremony, which was held earlier today, Robert [George?] Hercus @ Abdul Karim Hercus, Managing Director of MGRC said, “Over the past 8 years there has been a 9,000 fold increase in the volume of sequence data that can be generated in a single day. Bioinformatics analysis is needed to extract meaningful biological information from this data and more research institutions are looking to outsource such expertise to bioinformatics service providers such as MGRC. This listing is timely as it will allow us to tap into the capital market to expand our resources and capitalize on the growing demand for cutting edge bioinformatics solutions and analysis services.”
The Company is raising close to RM18.5 million from this IPO exercise, of which RM6.9 million (37.4%) will be used for capital expenditure, RM4.6 million (24.7%) for working capital, and the remainder for marketing expenditure, research and development activities as well as listing expenses.
A significant portion of MGRC’s capex will be utilized to purchase two next generation-sequencing machines which is expected to enhance the Company’s service offering, increase the speed of generating DNA sequence data, and reduce project costs.
Independent market research consultant, Frost & Sullivan Malaysia Sdn Bhd foresees that the global bioinformatics industry will grow from an estimated USD19.0 billion in 2009 to USD50.1 billion by 2014.
“We are very excited to ride on the growth of this emerging industry. Leveraging on our track record and technical expertise, we are confident of strengthening our market presence further”, said Hercus.
For the financial year ended 31 May 2009, MGRC recorded net profit of RM12.0 million on the back of RM17.1 million revenue. For its audited 10 month financial period (1) ended 31 March 2010, the Company posted net attributable profit of RM9.3 million against RM14.3 million revenue.
Applications for the subscription of MGRC’s public issue will open from today, 8 September 2010 and will close at 5 pm on 23 September 2010. Trading of MGRC shares on the ACE Market of Bursa Malaysia Securities Berhad is expected to commence at 9 am on 5 October 2010.