Edelteq Expects To Raise Rm24 Mln From Ace Market Listing

KUALA LUMPUR, May 9 (Bernama) -- Edelteq Holdings Bhd (Edelteq) eyes raising RM24 million from its initial public offering (IPO) on Bursa Malaysia’s ACE Market.

The company, an engineering support provider in the semiconductor industry, launched its prospectus today in conjunction with its listing on May 30, 2023.

Based on an issue price of RM0.24 per share and an enlarged share capital of 532.5 million shares, Edelteq will have a market capitalisation of RM127.81 million upon listing.

Edelteq’s IPO exercise encompasses a public issuance of 100.0 million new shares, representing 18.8 per cent of its enlarged share capital, as well as an offer for sale of 43.2 million existing shares, representing 8.1 per cent of the enlarged shares by way of private placement to selected investors.

“Out of the 100 million new shares, 26.6 million will be made available to the Malaysian public via balloting; 10 million shares to its eligible employees and persons who have contributed to the success of the group, while the remaining 63.4 million shares are reserved for selected investors through private placement,” it said in a statement.

From the IPO proceeds, Edelteq said RM3.7 million has been earmarked for the construction of the new factory in Batu Kawan, Penang and RM3.1 million for research and development activities, RM3.4 million will be utilised for working capital, RM10.3 million to repay bank borrowings and the balance RM3.6 million to defray listing expenses.

Executive director and group chief executive officer Chin Yong Keong said that the funds raised from the IPO will enhance the capabilities and improve the portfolio of products and services offered, thus increasing competitiveness and market share.

“In order to meet the growing market demand, we are expanding our production capacity with the construction of a new factory in Batu Kawan, Penang which is expected to be operational in March next year,” he said.

Moving forward, he said the company will be developing new products and services for its automated test equipment and integrated circuit assembly and test consumables. In terms of dividend policy, Edelteq has set a target to distribute up to 20 per cent of its annual profit after tax.

Applications for the public issue are now open and will close on May 17, 2023, at 5 pm.

UOB Kay Hian Securities (M) Sdn Bhd is the principal adviser, sponsor, underwriter, and placement agent for the IPO exercise.

-- BERNAMA