WBL Corp's subsidiary MFS Technology yesterday offered 51.6 million new shares at 27 cents each for a listing on Sesdaq to raise some $12.3 million for expansion and working capital.

WBL had originally planned to list MFS, or M-Flex Singapore, in August last year, but postponed it to mid-2001, before putting it off again. Its offer is the second IPO this year, after clean room equipment maker Kyodo-Allied which is also listing on Sesdaq.

MFS, which was formed in 1989, is mainly involved in the design, manufacture and distribution of flexible printed circuit boards, and also provides turnkey component assembly services for flexible printed circuits.

The share issue consists of 41.1 million placement shares, while another 7.9 million shares have been reserved for the directors, employees, and business associates. The remaining 2.6 million shares will be offered to the public.

MFS yesterday said it had also granted the placement agent, DBS Vickers Securities, an option to increase the placement tranche by up to another seven million shares to cover over-allotments.

The company intends to use around $7 million of the IPO proceeds to expand its flexible printed circuits production facilities in Singapore, around $800,000 million to expand its assembly facilities, and the remaining $4.5 million for additional working capital.

The 51.6 million shares, which make up 12 per cent of MFS' enlarged share capital, are priced at 7.9 times earnings for the year ended Sept 2001. For its recently-ended financial year, MFS' pre-tax profit slipped 23 per cent to $15 million on turnover of $88.3 million, due to the global electronics slowdown.

MFS, which has manufacturing facilities in Singapore, China and Malaysia, serves over 100 original equipment manufacturers and contract manufacturers globally.

The company said it intends to spend around $16 million over the next 18 months to increase its capacity and enhance its capabilities for the production of multi-layer flexible printed circuit board, rigid flex, and High Density Interconnect.

The offer, which is managed and underwritten by OCBC Bank, will close on Jan 14 and trading on a 'ready' basis is expected to start on Jan 16.