EDELTEQ Holdings Bhd has entered into an underwriting agreement with UOB Kay Hian Securities (M) Sdn Bhd (UOBKH) as part of its upcoming IPO on the ACE Market of Bursa Malaysia Securities Bhd. 

In a press release today, Edelteq said the IPO exercise will involve a public issuance of 100 million new shares, representing 18.78% of the company’s enlarged share capital, and an offer for sale of 43.2 million existing shares, or 8.11% of the enlarged shares, through private placement to selected investors. 

Out of the 100 million new shares, 26.63 million will be made available to the Malaysian public; 10 million shares made available to the eligible employees and persons who have contributed to the success of the group (pink form allocations), while the remaining 63.37 million shares are earmarked for selected investors through private placement. 

UOBKH will underwrite a total of 36.63 million new shares made available to the Malaysian public and pink form allocations. 

Edelteq, through its wholly-owned subsidiaries, is principally engaged in the provision of engineering support for IC assembly and test processes within the semiconductor industry. The group is also involved in the trading of operating supplies, spare parts and tools for IC assembly and testing. 

Its customers are mainly multinational integrated device manufacturers and outsourced semiconductor assembly and test companies in Malaysia and overseas, including countries such as Singapore, Thailand, China and the US. 

Edelteq ED and group CEO Chin Yong Keong said the group plans to allocate the majority of the IPO proceeds towards scaling up production capacity to meet growing demand for its services and the introduction of new products.

“This expansion will necessitate a larger production space for new machinery and additional office space for future human resource increases,” he said.

“We will also direct resources towards research and development efforts for the development of new automated test equipment and refurbishment methods, as well as enhancing our factory automation solutions,” Chin concluded. 

Edelteq is scheduled to be listed on the ACE Market of Bursa Securities by May 2023, with UOBKH as the principal adviser, sponsor, underwriter and placement agent for the IPO exercise. — TMR