QES to raise RM28.8m from IPO

PETALING JAYA: QES Group Bhd, which is tentatively set to be listed on the ACE Market of Bursa Malaysia on March 8, plans to raise RM28.82 million from its initial public offering (IPO).

QES is principally involved in the distribution of inspection, test and measurement equipment, materials and engineering solutions. It also manufactures optical inspection equipment and automated handling equipment.

As part of the IPO, QES will be issuing 151.66 million new shares at 19 sen each, representing approximately 20% of its enlarged share capital. Upon listing, the group’s total market capitalisation will be RM144 million.

Of the IPO proceeds, RM10.7 million will be used for capital expenditure, RM7 million for repayment of bank borrowings and RM4.85 million for product development. The remaining RM3.25 million will be allocated for working capital and the balance of RM3 million for estimated listing expenses.

The IPO involves the issuance of 37.91 million shares to the Malaysian public, 9.26 million shares to the eligible directors and employees and 104.48 million shares to selected investors.

There will also be an offer for sale of 75.83 million existing shares which will be placed out to identified bumiputra investors approved by the Ministry of International Trade and Industry.

In a statement yesterday in conjunction with its prospectus launch, its managing director/president Chew Ne Weng said the IPO proceeds would allow the group to develop three key products under its manufacturing division, expand its recurring income segment, diversify its market and product line-up in the distribution division.

QES said 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 the group.

It said 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 group’s listing.

“These new products will be source of revenue growth while enabling our customers to automate their inspection and handling processes,” Chew added.

Application for its shares are open until Feb 23, 2018.