KUALA LUMPUR (Dec 11): Engineering services firm Ambest Group Bhd has signed an underwriting agreement with Malacca Securities Sdn Bhd for its initial public offering (IPO) on the ACE Market.

Under the agreement, Malacca Securities will underwrite the tranche for the Malaysian public investors, as well as shares set aside for offered to eligible persons. The IPO is targeted for the first quarter of 2026.

“With the underwriting agreement in place, we take a key step in our IPO journey, driving our commitment to elevating Ambest’s capabilities to the next stage of growth,” said Ambest managing director Tan Beng Beng.

Ambest serves semiconductor customers from its base in Penang, a major hub for the industry, specialising in precision machining for customised parts and components. The company also carries out sheet-metal fabrication through third-party subcontractors.

A portion of the IPO proceeds will be used to repay borrowings and to purchase new high-precision machinery capable of handling larger or more complex components. The rest will be channelled towards general working capital, including input costs and day-to-day expenses.

Ambest’s proposed IPO will comprise a public issuance of 110 million new shares at a price to be determined later, as well as an offer for sale of 41 million existing shares held by Tan and his long-time business partner and executive director Lim Eng Guan.

Malacca Securities is the principal adviser, sponsor, underwriter and placement agent for the exercise, while WYNCORP Advisory serves as the corporate finance adviser.