QES Group Bhd expects to raise RM28.82 million under its proposed listing on the ACE Market of Bursa Malaysia Securities.
QES’s core business is the distribution of inspection, test and measurement equipment, materials and engineering solutions. QES also manufactures optical inspection equipment, automated handling equipment and advanced wafer measurement system.
QES plans to use RM10.72 million (37%) raised from the initial public offering (“IPO”) as capital expenditure (capex). Under the capex, it plans to purchase demonstration equipment for its distribution division, increase its production capacity and upgrade its information technology equipment for operational use.
It will further utilise RM7.0 million (24%) to repay bank borrowings; RM4.85 million (17%) for development of three (3) key products under its manufacturing division; RM3.25 million (11%) for general working capital requirements while the remaining RM3.0 million (11%) to be used to defray listing expenses for the IPO.
Chew Ne Weng, the Managing Director/President of QES, said the IPO would further strengthen the Company’s financial position as it embarks on the next phase of growth.
“The proceeds will allow us to develop three (3) key products under our manufacturing division as well as expand our recurring income segment, diversify our market segments and product line-up in our distribution division,” he added.
The development of three key products namely FAVIS (Fully Automated Vision Inspection System), AWPS (Automatic Wafer Packing System) and AWID (Automatic Wafer ID) will form the pillars of growth for the Company’s manufacturing division and increase revenue for QES.
The FAVIS, AWPS and AWID are expected to be fully developed and ready for commercial sale within the next 12 to 24 months after the Company’s listing.
“These new products (FAVIS, AWPS and AWID) will be source of revenue growth while enabling our customers to automate their inspection and handling processes,” he added.
Under the listing exercise, QES is issuing 151.66 million new shares at RM0.19 per share of which 37.92 million new shares will be made available to the Malaysian public via balloting; 9.27 million new shares for its eligible Directors and employees while the remaining 104.48 million new shares are earmarked for private placement to selected investors.
As part of its listing exercise, the existing shareholders of the Company will also offer for sale of 75.83 million shares to selected Bumiputera investors approved by Ministry of International Trade and Industry Malaysia (“MITI”) by way of private placement.
Based on the enlarged share capital of 758.31 million shares, QES is expected to have a market capitalisation of RM144.08 million.