Volcano Posts Revenue of RM17.66 Million in First Interim Statement Post-Listing

Volcano Berhad (“VOLCANO”, Stock Code: 0232), a leading manufacturer of parts and components including metal and non-metal nameplates and plastic injection moulded parts, is pleased to announce the Company’s first interim financial statement for the financial year ending 31 December 2021 following its listing on the ACE Market of Bursa Malaysia Securities Berhad.

Volcano Berhad Managing Director, Datuk Ch’ng Huat Seng

For the first quarter that ended on 31 March 2021, the Company registered revenue of RM17.66 million, profit before tax (“PBT”) of RM2.0 million and profit after tax (“PAT”) of RM1.41 million. There are no comparative figures available for revenue, PBT and PAT for the same quarter of the preceding year and year-to-date as this is Volcano’s first interim financial statement following its listing on 6 April 2021.

For the quarter under review, the Company’s nameplates segment contributed RM10.86 million to revenue while the plastic injection moulded parts segment contributed RM6.80 million to revenue.

Managing Director of Volcano, Datuk Ch’ng Huat Seng said, “We are cautiously optimistic about our prospects for the rest of the year based on demand from customers in the electrical and electronics (“E&E”) industry. We believe that our financial performance should remain favourable for the rest of the year barring any unforeseen circumstances.”

“Our expansion plans for the factory in Rayong, Thailand remains in place as we see lots of potential in the country’s E&E and automotive industries. We have already allocated RM5 million each year over the next three years for capital expenditure involving these plans.”

The Company derives more than 95% of revenue from overseas markets, with the principal markets being customers based in Singapore and Thailand. Besides the E&E industry, Volcano also serves customers from the automotive and aerospace industries.

Please contact the below for more information:
Hakim Juraimi
Tel: +60 12-318 5410
Email: [email protected]

Topic: Press release summary

Volcano Berhad Launches Prospectus for IPO

Volcano Berhad (“Volcano” or the “Group”), a leading international manufacturer of nameplates and plastic injection moulded parts, has successfully launched its prospectus for the Group’s listing on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).

Volcano Berhad’s factory in Rayong, Thailand

Volcano’s initial public offering (“IPO”) involves a public issue of 25.0 million IPO shares and an offer for sale of 35.0 million shares at the issue price of RM0.35 sen per share, made available for application in the following manner:

Public issue:
– 8.25 million new shares will be available for application to the Malaysian public;
– 8.25 million new shares will be allocated for application by eligible directors, key senior management, employees and business associates; and
– 8.50 million new shares will be offered by way of private placement to identified investors.

Offer for sale:
– 14.375 million shares by way of private placement to identified investors; and
– 20.625 million shares by way of private placement to identified bumiputera investors approved by the Ministry of International Trade and Industry.

The IPO is expected to raise gross proceeds of RM8.75 million. From the proceeds, the Group will use RM5.55 million for the purchase of machinery and equipment while RM3.20 million will be used for listing expenses.

Managing Director of Volcano, Datuk Ch’ng Huat Seng, said: “We are one step closer to an important milestone for Volcano since our establishment in 1999. For the co-founders, it is also a significant event in our professional careers to have come this far and we see our prospects supported by a strong and long-term customer portfolio comprising multinational companies from around the world. Our products are also used in end-user markets especially in the electrical and electronics (“E&E”) as well as automotive industries.”

“The proceeds from the IPO will go towards acquiring laser-cutting and pick-and-paste machines to improve the efficiency and capability of our nameplate manufacturing process. We are going to purchase additional plastic injection moulding machines to expand the plastic injection moulded parts manufacturing business. Besides the purchase of machinery and equipment, we are also going to expand our factory in Rayong, Thailand as we intend to expand our presence in the E&E and automotive industries in the country.”

Volcano’s principal markets are Singapore and Thailand. Overall, the foreign market accounts for more than 95% of overall revenue in the financial year ended 31 December 2020. Multinational companies (MNCs) comprise 90% of the sales including some leading brand names such as Bernina, Hewlett Packard, Fisher & Paykel Thailand, Donaldson Thailand, Sharp Indonesia and Panasonic Thailand.

Volcano’s Principal Adviser, Sole Placement Agent, Sole Underwriter and Sponsor in relation to the IPO is TA Securities Holdings Berhad (“TA Securities”). Pursuant to the underwriting agreement, TA Securities will be underwriting for shares available for application by the Malaysian public.

Datuk Ch’ng said: “Where we are today is also due to the hard work and dedication of the Volcano team. They are experienced and committed with operational expertise and in-depth knowledge of manufacturing of nameplates and plastic injection moulded parts. Our sincere gratitude goes to our customers and suppliers throughout the years that have continued to support our growth and success. We would also like to extend our gratitude to the team at the Securities Commission and Bursa Securities in assisting Volcano throughout the IPO process.”