KUALA LUMPUR: QES Group Bhd (QES), an inspection, test and measurement equipment maker, aims to be listed on the ACE Market of Bursa Malaysia by the first quarter (Q1) of 2018.
In a statement today, the group said it had signed an underwriting agreement with M&A Securities Sdn Bhd (M&A Securities) in conjunction with its initial public offering (IPO) exercise.
The IPO exercise would involve the issuance of 151.66 million new shares in QES representing 20 per cent of the enlarged share capital.
Proceeds from the IPO would be mainly used for capital expenditure to purchase demonstration equipment for its distribution division, tools, accessories and new information technology equipment for operational use.
The proceeds would be also used for repayment of bank borrowings, development of three key products under its manufacturing division and general working capital requirements.
QES Managing Director/President, Chew Ne Weng said the listing exercise would enable QES to strengthen its position in the inspection, test and measurement equipment industry.
“By being a listed entity, we hope to further increase confidence among our investors, stakeholders and customers, While continuing to work towards enhancing the long-term value of the company, by providing quality products and services across our distribution and manufacturing divisions,” he added.
Of the 151.66 million new shares, 37.92 million new shares would be made available to the Malaysian public via balloting, 9.27 million new shares for its eligible directors and employees, while the remaining 104.48 million new shares has been earmarked for private placement to selected investors.
As part of its listing exercise, the existing shareholders of the company would be offering 75.83 million shares to be sold to selected Bumiputera investors approved by Ministry of International Trade and Industry (MITI) by way of private placement. – Bernama