KUALA LUMPUR (Sept 18): Imaging company Crest Group Bhd has begun taking orders from investors on Wednesday for its initial public offering (IPO) to raise up to RM82.11 million on the ACE Market.
The IPO, priced at 35 sen per share, comprises a public issuance of 130.71 million new ordinary shares and an offer for sale of 103.98 million existing shares, according to its prospectus launched on Wednesday. All in all, the listing offers investors a 27.10% stake in Crest Group.
Applications for the IPO will close on Sept 25, 2024 and listing has been scheduled for Oct 9, 2024.
At the IPO price, Crest Group will have a market capitalisation of about RM303 million upon listing.
Crest Group mainly specialises in providing imaging, analytical, and testing solutions for quality inspection, sample analysis, and research and development, serving various sectors including the semiconductor, electrical and electronics, and automotive industries.
The group also provides after-sales technical support and maintenance, with operations in Malaysia, China, Thailand, and Singapore. For the financial year ended Dec 31, 2023, Malaysia contributed 37.6% of the group's total revenue, followed by Thailand, China, Singapore, and other countries.
Under the public issuance, 43.28 million new shares are allocated to the Malaysian public, while 12.98 million shares are earmarked for eligible persons. The group will also sell 74.44 million shares to approved selected investors through a private placement.
Crest Group expects to raise RM45.75 million from the issuance of new shares, of which RM14.52 million will be used to establish new offices in Ho Chi Minh City, Vietnam, as well as in Chengdu and Shenzhen in China.
“We are actively identifying suitable office spaces," said managing director Lim Siong Wai. "We will gradually begin recruiting personnel after.”
Crest Group also allocated RM3.60 million to expand its technical support and maintenance teams, RM5.87 million for the acquisition of additional demonstration equipment, and RM15.76 million for a new centralised headquarters in Selangor.
Meanwhile, the offer for sale of existing shares will raise RM36.36 million, which will go entirely to the selling shareholders Lim as well as executive directors Au Chun Mun and Yap Kian Meng.
Post-IPO, Lim’s direct stake will be diluted to 5.98% while Au and Yap will each hold 5.65%. The trio also would still have 55% stake through their private investment company Climan Sdn Bhd.
MIDF Amanah Investment Bank is the principal adviser, sponsor, underwriter, and placement agent for the IPO.