KUALA LUMPUR (March 12): SQ Advanced Interconnect Bhd, a semiconductor component maker, is planning to list on the Main Market of Bursa Malaysia to fund its expansion as well as research and development (R&D).

Proceeds from its initial public offering (IPO) have been earmarked for an expansion of its facilities, R&D funds, and talent development and retention, according to SQ Advanced Interconnect’s prospectus exposure filed with the Securities Commission Malaysia (SC) on Thursday.

Listing funds will also be allocated to working capital, repaying borrowings and defraying the exercise’s costs.

Based in Penang, SQ Advanced Interconnect manufactures and assembles flexible printed circuits (FPC) and manufactures integrated circuit (IC) substrates, covering circuit design, prototype fabrication and production. 
 
The company, which started business operations in 1993, has two manufacturing plants in Malaysia, one in Bayan Lepas and another in Batu Kawan. It has one manufacturing plant in Xiamen, Fujian Province, China.

In recent years, the company’s earnings have been on the uptrend, with profit after tax climbing to RM80.17 million in 2025 from RM68.6 million in 2023. It has a diversified customer base of about 380 customers, it noted. 
 
The proposed IPO of 337.5 million shares, consists of a public issuance of 202.5 million new shares and an offer for sale of 135 million shares by substantial shareholder Twisden Ltd, which holds a 10.4% stake.

Twisden is 75%-owned by SQ Advanced Interconnect managing director and CEO Jeffrey Hwang Shin Hung, while the remainder is held by executive director and president of Xiamen plant operations Brian Low Loke Chew.
  
Post-listing, Twisden will cease to be a substantial shareholder. Hwang will control a 58.12% direct and indirect stake in the company, while Low will have 19.38% direct and indirect stake.

Hwang’s indirect stake will be via SQT Holdings Ltd, while Low’s will be via SQ Venture Ltd. Both Hwang and Low have agreed to keep their shares in the company for at least six months.

UOB Kay Hian (M) Sdn Bhd is the principal adviser, joint underwriter and joint bookrunner for the IPO.