Company officials told a news conference the funds would go towards growing their core manufacturing and engineering businesses and to repay some borrowings.

EnerSave, in which Acma has a 67-68 per cent stake, is involved in design, development and production of its own brand of electronic ballasts used in lighting tubes and air-conditioner controllers.

It does contract manufacturing of multimedia, networking and electronic consumer products for small and medium-sized companies in the United states and Europe.

It provides, designs and builds mechanical and engineering and outfitting services ranging from fire prevention and protection, electrical systems, heating, ventilation and airconditioning to interior and exterior out-fitting services.

"The current marketsituation is not very favourable. The majority of the shares will be placed out," said Tay Wee Kwang, EnerSave's director of business development.

The placement shares would be offered to business associates and some institutional investors, he said. The company will offer new shares for listing on the second board of the Stock Exchange of Singapore. EnerSave has filed two patents for electronic ballastcircuitry and another for a new electronic ballast product, managing director Yu Swee Sing said. The electronic ballasts save energy on light usage and extend the life of fluorescent tubes compared to conventional magnetic ballasts, the officials said.

The ballasts now contribute 15 ro 20 per cent of the company's annual revenue of S$44.6 Million in 1997, Tay said. Its products have a 10 to 15 per cent share of the control gear market of lighting tubes in Asia, company officials said.

Half of its 1997 turnover came from the engineering division. Net profit for 1997 was S$3.8 Million. The electronicballasts are now sold mainly in Asia, but the company intends to push into the US and European markets after its listing, officials said. "Europe and the US are big markets for electronic ballasts. We see the potential there," chairman Joseph Foo said.

Foo said the company could penetrate the new markets through acquisitions, joint ventures or distribution deals. He saw global competition from brands like Philips and Osram which belongs to Germany's Siemens group. He said the company was cash rich and some of the proceeds from the IPO could be used for acquisitions.

EnerSave manufactures the electronic ballasts at its site in Johor, Malaysia, where it also handles printed circuit board assemblies (PCBAs) and other product assembly.