KUALA LUMPUR: Crest Group Bhd, which is en route to a listing on the ACE Market of Bursa Malaysia Securities, is optimistic about the growth of the semiconductor and electronics and electrical (E&E) sectors, which will accelerate the company’s client base and expansion in the region.
Executive director and managing director Lim Siong Wai said Crest Group sees rising demand and growth of the technology sector, particularly in artificial intelligence (AI), semiconductors, E&E, academia, automotives, oil and gas, aviation, life sciences and healthcare.
“The semiconductor sector alone contributes about 60% of our revenue, and we are quite positive in achieving consistent, if not higher, contribution from this segment,” he told reporters after the launch of its initial public offering (IPO) prospectus today.
According to its latest audited financials for the year ending Dec 31, 2023, Malaysia contributed 37.6% of total revenue, followed by Thailand with 27.11%, China 24%, Singapore 8.69%, and other countries 2.6%.
Crest Group aims to raise about RM45.75 million in proceeds by issuing 130.7 million shares at an IPO price of 35 sen per share. With an enlarged share capital of 865.59 million shares, the company’s estimated market capitalisation upon listing will be RM302.96 million.
The IPO shares have been classified as syariah-compliant, and the company plans to target a dividend payout ratio of at least 30% of its annual profit after tax attributable to shareholders.
“We have grown from strength to strength, expanding our presence into China, Thailand and Singapore.
“Today, our company is a formidable player in the imaging, analytical, and test solutions industry. Our subsidiaries are at the forefront, providing optimised solutions for quality inspection, sample analysis, and R&D across various industries, from semiconductors, electrical and electronics, automotive, life sciences, healthcare, and beyond,” Lim said.
Crest Group is allocating RM14.52 million, or 31.73% of the IPO proceeds to expand its presence in key markets. The plans include opening offices in Ho Chi Minh City in Vietnam, and Chengdu and Shenzhen in China.
Lim said that by expanding into Vietnam and deepening its presence in China, the group aims to solidify its market position in these key locations.
“We are actively identifying suitable office spaces and will gradually begin recruiting new personnel. In terms of increasing our headcount to cater for our future growth, we will be adding new sales staff for our new offices in Vietnam and China, as well as in our existing Thailand office.”
Furthermore, Crest Group will be spending about RM3.6 million to expand its technical support and maintenance teams to serve existing and future customers, Lim said.
The company has also earmarked RM5.87 million for the purchase of additional demonstration equipment and RM15.76 million for its new centralised headquarters.
“Crest Group Bhd’s success would not be possible without the long-standing relationships we have built with our network of 23 equipment principals from seven countries, including France, Germany, Japan, and the USA. These trusted partnerships provide us with access to a wide range of equipment, allowing us to offer the most suitable solutions to our customers,“ Lim said.
MIDF Amanah Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for Crest Group’s IPO.
