KUALA LUMPUR: Edelteq Holdings Bhd, an engineering support provider for integrated circuit (IC) assembly and test processes, has inked an underwriting agreement with UOB Kay Hian Securities (M) Sdn Bhd (UOBKH) as part of its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.

In a statement, Edelteq said the IPO exercise would involve a public issuance of 100 million new shares, which represents 18.78 per cent of its enlarged share capital, and an offer for sale of 43.20 million existing shares, or 8.11 per cent of the enlarged shares, through private placement to selected investors.

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

Pursuant to the underwriting agreement, UOBKH would 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 activities within the semiconductor industry including the design, assembly and supply of IC burn-in boards, printed circuit boards, IC assembly and test consumables, as well as automated test equipment.

The group is also involved in the trading of operating supplies, spare parts and tools for IC assembly and testing.

“With access to the equity capital market, we will have the resources and flexibility to expand our market share, execute our growth plans, and capitalise on the exciting opportunities in the ever-evolving semiconductor industry,” said executive director and group chief executive officer Chin Yong Keong.

Moving forward, he said Edelteq plans to allocate the majority of its IPO proceeds towards scaling up production capacity to meet the growing demand for services and the introduction of new products.

“This expansion would necessitate a larger production space for new machinery and additional office space for future human resource increases.

“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 the factory automation solutions,” he said.

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