KUALA LUMPUR (Sept 18): Crest Group Bhd, which launched its initial public offering (IPO) prospectus on Wednesday, said the group is eyeing regional expansion and further investment in its imaging and analytical services.
Crest Group's core business mainly involves providing advanced quality control, defect analysis, and testing services to multiple sectors including semiconductor and healthcare.
Its imaging, analytical and test solutions supports both the semiconductor and electrical and electronic industries, from outsourced semiconductor assembly and testing (OSAT) to electronic manufacturing services (EMS).
Crest is targeting to raise RM45.75 million from the IPO through issuance of new shares. Of this, RM14.52 million will be for the opening of new offices in its growth markets, namely Ho Chi Minh City, Vietnam, as well as Chengdu and Shenzhen in China.
"Our aim is to be the go-to provider of imaging and analytical solutions across the spectrum, from routine to advance," executive director Ethan Au said at a press conference on the IPO prospectus launch.
"We see significant investments there, which align with our strategy of entering high-growth markets," he said, while highlighting the company’s ambitions to replicate its success in markets like China, Singapore, and Thailand.
According to Au, this expansion is part of its strategy to tap into the booming semiconductor and electronics markets in the region. The semiconductor space is “major driver of future growth”, described Au.
"Vietnam just started not long ago, but it’s already catching up to more established markets like the Philippines," Au said.
Crest priced its IPO at 35 sen per share, with a public issuance of 130.71 million new ordinary shares (15.1% of its enlarged share capital) and an offer for sale of 103.98 million existing shares (12% of its enlarged share capital).
With an enlarged share base of 865.598 million shares post-listing, Crest Group will have a market capitalisation of RM302.96 million based on share price of 35 sen apiece.
That would value the group at a historical price-to-earnings ratio of 15.07 times, based on profit after tax (PAT) of RM20.096 million in the financial year ended Dec 31, 2023.
In the first four months of 2024 (January-April), the group posted a PAT of RM2.93 million, on a revenue of RM49.52 million.
Applications for the IPO will close on Sept 25, 2024 and listing has been scheduled for Oct 9, 2024.