QES Group to raise RM28.8m from listing on ACE Market

All set for the IPO: From left are M&A Securities executive director/head of operations Goh Hock Jin; QES executive director Liew Soo Keang; managing director Chew Ne Weng, M&A Securities managing director of corporate finance Datuk Bill Tan and M&A Securities head of corporate finance Gary Ting.

KUALA LUMPUR: QES Group Bhd to raise RM28.8mil from issuance of 151.66 million new shares at 19 sen each from its proposed listing on ACE Market of Bursa Malaysia.

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

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

QES major shareholders will also offer for sale of 75.83 million existing shares which will be placed out to dentified bumiputera investors approved by the Ministry of International Trade and Industry. 

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 RM10.72 million (37%) raised from the IPO as capital expenditure (capex) where it will purchase equipment for its distribution division, increase its production capacity and upgrade its IT equipment.

It also plans to use RM7mil (24%) to repay bank borrowings; RM4.85mil (17%)  to develop three key products under its manufacturing division while RM3.25mil (11%) will be for general working capital. The remaining RM3mil (11%) will be  used to defray listing expenses for the IPO.

Speaking at the launch of the prospectus, QES managing director and president Chew Ne Weng said the IPO would enhance the company’s financial position as it embarks on the next phase of growth. 

“The proceeds will allow us to develop three 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 three key products to be developed are the fully automated vision inspection system); automatic wafer packing system and automatic wafer ID. They will underpin its manufacturing division and drive its revenue growth.

These products are expected to be fully developed and ready for commercial sale within the next 12 to 24 months after the xompany’s listing. 

 Chew said the products would enable its customers to automate their inspection and handling processes.

Among those present at the launch of the prospectus were Goh Hock Jin, the executive director/head of operations of M&A Securities Sdn Bhd; QES executive director Liew Soo Keang,  M&A Securities managing director of corporate finance Datuk Bill Tan and  head of corporate finance of M&A Securities Gary Ting.