ELECTRONIC security systems provider iNix Technologies Holdings Bhd expects to raise about RM10.5 million from its listing on the Malaysian Exchange of Securities Dealing and Automated Quotation Bhd market to expand operations.

The initial public offering, due to take place in the final quarter of this year, will see the Selangor-based entity making a public issue of 14.95 million new ordinary shares of 10 sen each at 70 sen apiece.

“With the listing proceeds, we will be able to make bigger purchases of raw materials such as electronic components for our products, which will translate into cost savings,” iNix chief executive Jimmy Tok Soon Guan told Business Times in Subang Jaya.

Of the proceeds, RM2.5 million will be used for research and development, RM1 million for advertising and promotion, RM500,000 for the upgrading of factory equipment and RM1.8 million for listing expenses.

The balance, according to Tok, will be reserved for contingencies.

The company’s listing prospectus is due for release in August.

While declining to reveal exact figures, he said he expects the company’s net profit to increase by about 30 per cent during the next one year based on the group’s existing contracts and oncoming deals.

Going forward, iNix plans to secure new buyers in the United Arab Emirates and the US by the final quarter of this year, on top of the company’s existing overseas clientele in Australia, Sri Lanka and Europe.

“We see vast potential in the US for our do-it-yourself products which can bring about cost savings for our customers. We have shortlisted the distributors for the new markets,” he said.

The home market, which currently accounts for about 45 per cent of the company’s business, is centred mainly on housing developers and retail buyers.

The ratio of future local to foreign earnings is forecast to hover around existing figures.