KUALA LUMPUR (Feb 9): Crest Group Bhd, a provider of imaging, analytical and test solutions, has proposed an initial public offering (IPO) of 234.6 million shares on the ACE Market of Bursa Malaysia, as it looks to raise funds to establish a new headquarter, according to its prospectus exposure with Bursa Malaysia.
The IPO comprises a public issue of 130.7 million new ordinary shares and an offer for sale of 103.9 million existing shares. Out of the new shares, 43.3 million will be allocated for the Malaysian public via balloting, 13 million for eligible directors and employees, and the remaining 74.4 million for private placement to selected investors.
Meanwhile, out of the existing shares, 33.8 million are meant for Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti), and the remaining 70.1 million for selected investors via private placement.
Crest Group serves a wide range of industries, including semiconductor, electrical and electronic (E&E), academic, automotive, oil and gas, aviation, life sciences and healthcare, with its quality inspection, sample analysis and research and development (R&D) solutions.
The group plans to use the IPO proceeds to set up a new headquarters (HQ) in Selangor to consolidate its operations in the Central region of Malaysia, as well as to purchase new advanced imaging equipment and sample management equipment for its demonstration rooms in Malaysia, China and Thailand.
The group also intends to expand its overseas presence in Vietnam and grow its business in China and Thailand, and to enhance its after-sales services segment by hiring more staff to handle technical support and maintenance services.
For the financial year ended Dec 31, 2022 (FY2022), Crest Group posted a profit after tax (PAT) of RM17.98 million, up 3.52% from RM17.37 million in FY2021, as revenue rose 14.68% to RM170.2 million, from RM148.41 million in FY2021. It recorded a PAT of RM13.5 million in FY2020, on revenue of RM124.43 million.
The group aims to pay dividends of not less than 30% of its annual PAT, subject to its financial performance, cash flow and capital requirements.
Crest Group’s group managing director Lim Siong Wai is deemed to hold 33.78% of the group’s share capital, while non-independent executive directors Au Chun Mun and Yap Kian Meng both hold 32.74% each.
After the IPO, their deemed interest will be diluted to 5.98% for Lim, and 5.65% each for Au and Yap. The trio also has an indirect 55% stake through Climan Sdn Bhd.
MIDF Amanah Investment Bank is the principal adviser, sponsor, underwriter and placement agent for the IPO.