The exercise would give the Penang-based semiconductor player a market capitalisation of RM399.38 million, almost triple the RM127.81 million amount expected in its prospectus.
Edelteq is involved in the provision of engineering support for integrated circuit assembly and test processes in the semiconductor industry.
Ahead of its listing, Edelteq announced that 100 million of its newly issued shares – representing 18.8% of its enlarged share capital – had been oversubscribed 152.03 times by the Malaysian public.
Concurrently, Edelteq had placed 43.2 million shares (8.1%) for sale by way of private placement to selected investors.
The group has an enlarged share capital of 532.5 million shares.
The group planned to raise RM24 million from the initial public offering (IPO), of which RM3.7 million has been earmarked for the construction of a new factory in Batu Kawan, Penang, while RM3.1 million will be used for research and development activities.
RM10.3 million will be used to repay the group’s bank borrowings, and the balance of RM3.6 million to defray listing expenses.
Executive director and CEO Chin Yong Keong said: “Armed with the fresh funds raised from our IPO, we are excited to implement our expansion plans.”
“Our new Batu Kawan factory, which is expected to be operational in March 2024, will expand our production capacity and meet the growing demand for our products and services,” he added.
For the first quarter ended March 31, 2023 (Q1 FY2023), the group posted a net profit of RM3 million on a revenue of RM9.8 million.
In FY2022, the group posted a lower net profit of RM5.4 million from RM9 million in FY2021 due to lower revenue from the supply and refurbishment segment of IC assembly and test consumables.
“We will match and overcome that number (RM9 million net profit) sooner or later, but not this year,” said Chin.
Meanwhile revenue in FY2022 rose marginally to RM24.4 million, from RM24 million the previous year.
UOB Kay Hian Securities (M) Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.