(From left) Crest Group Bhd independent non-executive directors Moo Eng Thing and Teo Yeling, executive director Yap Kian Meng, chairman Ahmad Tajudin Omar, executive director and managing director Lim Siong Wai, as well as executive director Ethan Au, MIDF Amanah Investment Bank Bhd chief executive officer Datuk Dr Dominic Silva and deputy CEO Datuk Seri Diraja Nur Julie Gwee Ariff, with Crest Group independent non-executive director Ilham Fadilah Sunhaji on Wednesday. (Photo by Shahrill Basri/The Edge)

KUALA LUMPUR (Oct 9): Imaging company Crest Group Bhd (KL:CREST) ended its maiden trading day on the ACE market flat at 35 sen, unchanged from its initial public offering (IPO) price, giving it a market capitalisation of RM303 million.

The counter emerged as the second most active stock on the local exchange on Wednesday, with 114.8 million shares exchanged. It traded between an intra-day low of 35 sen and a high of 40 sen during Wednesday’s trading session, after opening at 39.5 sen.

Based on its IPO price of 35 sen per share and net profit of RM20.1 million for the financial year ended Dec 31, 2023, the group’s price-earnings ratio stood at 16.6 times.

Demand during its IPO was strong as its public tranche was oversubscribed by 73.88 times. The Bumiputera portion was oversubscribed by 53.41 times, while the remaining public portion was oversubscribed by 94.35 times.

Crest Group raised a total of RM82.11 million from its IPO.

Shares set aside for eligible persons, Bumiputera investors, and select investors offered through private placement were fully taken up.

Crest Group specialises in providing imaging, analytical, and testing solutions for quality inspection, sample analysis, and research and development, serving various sectors, including the semiconductor, electrical and electronics, and automotive industries.

The sale of new shares raised RM45.75 million, of which RM14.52 million will be used to establish new offices in Ho Chi Minh City, Vietnam, as well as in Chengdu and Shenzhen in China.

The company has also allocated RM3.60 million to expand its technical support and maintenance teams, RM5.87 million for the acquisition of additional demonstration equipment, and RM15.76 million for a new centralised headquarters in Selangor.

Meanwhile, the offer for sale of existing shares raised RM36.36 million, which accrued entirely to selling shareholders Lim Siong Wai, who is the group managing director, as well as executive directors Au Chun Mun and Yap Kian Meng.

Post-IPO, Lim’s direct stake is diluted to 5.98%, while Au and Yap each hold 5.65%. The trio would still have a 55% stake through private investment company Climan Sdn Bhd.

MIDF Amanah Investment Bank is the principal adviser, sponsor, underwriter, and placement agent for the IPO.