Monday, March 28, 2011

RFID solutions-based Smartag to raise RM17.6m from IPO

KUALA LUMPUR: Radio frequency identification (RFID) solutions provider Smartag Solutions Bhd plans to raise RM17.67 million from its listing exercise.

Smartag said on Monday, March 28 its initial public offering would involve the issuance of 57 million new shares at 31sen each.

Of the 57.0 million new shares, it said 50 million shares would be placed out; five million shares allocated to the eligible directors, employees and business associates and two million shares offered to the public.

It said of the RM17.67 million in proceeds, it said RM8.84 million would be for project-related capital expenditure, RM3.36 million for R&D and related expenditure, RM3.53 million for working capital and RM1.94 million to defray listing expenses.

The company is targeting to list on the ACE Market of Bursa Malaysia. The applications for the shares close at 5pm on April 4 and its targeted listing date is April 18, 2011.

Smartag chief executive officer PK Lim said the company plans to implement land checkpoint RFID projects in Thailand for container track and trace.

The RFID projects would be implemented at the Sadao, Suvarnabumi and Mukdahan customs checkpoints by April 2011.

According to the Independent Market Researcher, the RFID market in Asia Pacific ' comprising tags, readers and middleware ' was valued at about US$771.4 million in 2010, recording an 18% compounded annual growth rate (CAGR) from 2006 to 2010.

The report expected the RFID market in Asia-Pacific grow at 23% CAGR from 2011 to 2013 and to be worth US$1.4 billion at the end of the period.

Growth in RFID would be based on rising awareness of the benefits of RFID within the private and public sector; expanding applications in a wider range of industries; standardisation efforts for the TECHNOLOGY [] and strong government support for RFID technology by providing direct funding or subsidies for vendors' RFID initiatives, and undertaking continuous education to business entities on the value of RFID applications.



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