PETALING JAYA: Engineering support provider for integrated circuit (IC) assembly and test processes in the semiconductor industry Edelteq Holdings has entered into an underwriting agreement with UOB Kay Hian Securities (M) Sdn Bhd as part of its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities.
The IPO will involve a public issuance of 100 million new shares, representing 18.78% of Edelteq’s enlarged share capital, and an offer for sale of 43.20 million existing shares, or 8.11% of the enlarged shares, through private placement to selected investors.
Of the 100 million new shares, 26.63 million will be made available to the Malaysian public via balloting; 10 million shares made available to 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.
UOB Kay Hian 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. Its customers are primarily multinational integrated device manufacturers
Edelteq executive director and group CEO Chin Yong Keong, said, “We are thrilled to have signed this underwriting agreement with UOBKH, bringing us one step closer to our listing on the ACE Market of Bursa Securities. 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.”
Moving forward, he said they plan to allocate the majority of the IPO proceeds towards scaling up production capacity to meet growing demand for their services and the introduction of new products.