QES aims to raise RM28.8mil via Ace Market listing

PETALING JAYA: QES Group Bhd aims to raise RM28.8mil for expansion by selling shares to the public and listing on the Ace Market.

The company, which is involved in optical inspection and automated handling equipment, said the public issue would involve 37.91 million shares while 9.26 million shares would be made available to directors and staff.

Under the listing exercise, it will also place out 104.48 million shares to selected investors.

QES’ major shareholders will also offer for sale 75.83 million existing shares, which will be placed out to identified bumiputra investors approved by the International Trade and Industry Ministry.

M&A Securities will underwrite a total of 47.18 million new shares made available for the Malaysian public and its eligible directors and employees. It is tentatively set to be listed on March 8.

QES plans to use RM10.72mil (37%) raised from the initial public offering as capital expenditure, where it will purchase equipment for its distribution division, increase its production capacity and upgrade IT equipment.

For the financial year ended Dec 31, 2016, QES recorded a net profit of RM9.5mil on revenue of RM137.3mil.

The group has about 8,000 installed base of equipment spread all over the world. This enables it to generate stable and growing recurring revenue every year.

Currently, Malaysia contributes 47.7% to QES’ revenue, followed by Vietnam, Singapore and the Philippines. QES, founded in 1991, has an estimated 10% market share in the country’s test and measurement market.