Action Asia, Challenger start year with IPOs

By Lee Su Shyan - Jan 06, 2004
The Straits Times

INITIAL public offers (IPOs) have made a quick start in the new year, with two of them already off the blocks in just the first week. Market players say the tally for the month may be around 10.

Malaysia-based Action Asia, which makes video and audio equipment, and local infotech superstore Challenger Technologies are the first to be launched this year.

Others in the pipeline include Speedy-Tech Electronics, which provides electronic manufacturing services and Matex International, a chemicals player. Observers say the recent rally in the market is prompting those who had put listing plans on hold to re-assess their moves.

United Test and Assembly Centre (Utac) - which had planned to list in Singapore and Nasdaq during the dot.com boom - lodged its prospectus last month and is expected to unveil its IPO shortly.

Another player is Global Active, the sole franchisee for the GNC health-care group in Singapore. It had delayed its plans early last year but is now going ahead again.

Meanwhile, Action Asia yesterday launched its IPO with 100 million shares at 31 cents each. Of this, 10 million will be offered to the public, while the rest will be placement shares.

The company, which has manufacturing facilities in Penang, makes mobile entertainment devices used in cars. What is unique about Action Asia is it has the 'technical know-how of integrating the LCD television monitors with DVD players' in cars, said managing director Peng Wen Chih.

Its main market is the United States, where it supplies Audiovox, Thomson Inc and Zenith Electronics.

But going forward, this may change. With expected net proceeds of $22 million, Action Asia plans to expand into the growing Asian market by setting up a manufacturing facility in China and another in Thailand, where many automobile-makers are based.

Action Asia has never had a loss-making report card in all its 15-year history, Mr Peng said.

Challenger Technologies's offer comprises 32 million shares at 23 cents each, to raise net proceeds of $6.3 million.

Said chief executive officer Loo Leong Thye: 'With an entrenched market position in Singapore, we believe we are well-positioned to benefit from the continual growth of the infocomm industry here.'

Only one million shares will be by way of public offer. The remaining 31 million shares will be placed out. This includes 24.5 million placement shares, 4.5 million internet placement shares for applications through the website www.ePublicOffer.com and two million shares reserved for directors, employees and business associates.