Smartag to start Thai project soon

The radio frequency identification (RFID) solutions provider has signed a container tracking service and partnership agreement with Netbay Co Ltd to implement the system at the customs checkpoints in Thailand. The system is now on a trial run.

"To date, we have set up the first phase of RFID infrastructure in Sadao, Suvarnabumi Customs Free Zone and Mukdahan customs checkpoint in Thailand.

"We have begun pilot projects for two big logistic companies - DHL and TNT," Smartag's chairman Datuk Abdul Hamed Sepawi Hamed told reporters after the launch of Smartag's prospectus in Kuala Lumpur yesterday.

He said the system will help curb abuses or thefts of clients' goods as it is able to track goods from the start till the end of a journey.

"We will be implementing some projects in Malaysia soon, but I cannot announce them yet as we have signed non-disclosure agreements," Hamed said.

He said it was difficult to gauge the value of the contracts it would get in future.

"Let's say that one company has one million items to track per shipment ... that's one million times US$20 (RM61) per trip," he said.

Hamed did not reveal the company's order book, but said that the technology used for its RFID system is the first of its kind. It is a combination of various technologies, he added.

He also said that Smartag has plans to sell the system in countries like Laos, China, Singapore and Australia.

On its listing exercise, Hamed said the company expects to raise RM17.7 million from its initial public offering (IPO).

The IPO entails a public issue of 57 million new shares at 31 sen each. Of this, 50 million shares are allocated for private placement to eligible investors, five million for eligible directors, employees and business associates of the group and the remaining for the public.

The company will use RM8.84 million of the proceeds for project-related capital expenditure, RM3.36 million for research and development, RM3.53 million for working capital and RM1.94 million for listing expenses.

Kenanga Investment Bank Bhd is the adviser, sponsor, underwriter and placement agent for the IPO.

By June Ramlee ,business times