Unisem (M) Bhd plans to raise up to RM742 million through a private placement of up to 161.3 million new shares to fund the expansion of its semiconductor manufacturing capacity, particularly for artificial intelligence (AI) and high-performance computing (HPC) applications, while also reducing its borrowings.
Trading in Unisem shares was suspended between 9am and 10am on Friday pending the announcement.
In a filing with Bursa Malaysia, the semiconductor assembly and test services provider said the placement shares will be offered to local and foreign institutional investors through a book-building exercise.
Based on an illustrative issue price of RM4.60 per share, the proposed private placement is expected to generate gross proceeds of approximately RM742 million.
Of the total proceeds, RM444.5 million will be allocated for capital expenditure, including the purchase of assembly, test and wafer bumping equipment, as well as the establishment of cleanroom facilities to support future production growth.
Meanwhile, RM269.9 million will be used to repay existing borrowings, RM22.9 million will be set aside for working capital requirements, while the remaining RM4.6 million will be utilised to cover expenses related to the fundraising exercise.
Unisem said the fundraising follows significant investments in its new manufacturing facility in Gopeng, Perak, and the Phase 3 expansion of its Chengdu operations in China, both of which were partly financed through debt.
The company said the additional capital will support its next phase of expansion by increasing production capacity to meet rising global demand for semiconductor solutions used in AI and high-performance computing, while also enhancing operational efficiency and lowering financing costs.
Although the group had cash and bank balances of approximately RM258.9 million as at March 31, 2026, Unisem said the private placement would strengthen its financial flexibility without significantly depleting its cash reserves.
“The proposed private placement will enable the group to preserve its existing cash for operational requirements and working capital while remaining well-positioned to pursue future expansion opportunities as they arise,” the company said.
It added that the exercise reflects its commitment to maintaining prudent financial management, operational resilience and long-term sustainable growth amid the evolving global semiconductor landscape.
The private placement is also expected to improve the company’s public shareholding spread to approximately 31.84% from 25.02%, while enhancing the liquidity of its shares.
The exercise will be carried out under the company’s existing general mandate approved by shareholders at its annual general meeting on April 28, 2026, and will not require further shareholder approval.
Subject to regulatory approvals and the successful placement of all shares in a single tranche, the fundraising exercise is expected to be completed by the third quarter of calendar year 2026.
