KUALA LUMPUR: Crest Group Bhd, en route to its listing on the ACE Market of Bursa Malaysia, aims to raise RM45.75 million from its initial public offering (IPO).

The IPO is priced at 35 sen per share, and the listing is scheduled for Oct 9, 2024.

Non-independent executive director and group managing director Lim Siong Wai said that out of the total proceeds raised, RM15.76 million will be allocated for the company's new headquarters in Selangor.

"Currently, we have two offices located in Puchong and Subang Jaya. Our plan is to centralise these two offices into one, which will be our new headquarters in Selangor.

"This will help streamline our operations, and in the long run, it will reduce operational costs, making it much more efficient," he told a press conference in conjunction with the IPO's prospectus launch today.

The IPO entails a public issue of 130.71 million new ordinary shares and an offer for sale of 103.890 million existing ordinary shares.

Of the 130.71 million issued shares, 43.28 million will be made available to the Malaysian public via balloting, and 12.98 million shares will be made available to eligible directors and employees.

Meanwhile, the remaining 74.44 million shares will be made available to identified bumiputera investors approved by the Ministry of Investment, Trade, and Industry, Malaysia, via private placement.

In a statement, Crest estimated its market capitalisation upon listing to be approximately RM302.96 million.

Crest initially focused on supplying inspection and quality control equipment to the semiconductor and the electronics and electrical (E&E)  industries.

It has since expanded its offerings to include comprehensive imaging, analytical, and testing solutions with a broader industry reach, spanning the life sciences, healthcare, automotive, aviation, and oil and gas sectors.

Crest's services range from pre-sales consulting, customisation, installation, commissioning, and user training to comprehensive after-sales support.

Lim said that the company also plans to allocate 186 square feet (sq ft) of its new HQ as a demonstration room to house its existing and new equipment for demonstration purposes.

He also said the company will allocate RM14.52 million to expand its presence into key markets by opening new offices in Ho Chi Minh City, Vietnam, as well as Chengdu and Shenzhen in China.

"Vietnam is in a position where they are booming in the semiconductor, E&E industries. It is quite well-known," he said.

Lim said that through the expansion, Crest would increase its headcount to cater to its future growth by adding new sales staff for its new offices in Vietnam and China and its existing office in Thailand.

"Lastly, we have also earmarked another RM5.87 million for the purchase of additional demonstration equipment, and RM3.60 million will be used to expand our technical support and maintenance teams to better serve our existing and future customers," he added.

The public issue portion of the IPO is now open for subscription, with applications closing on Sept 25, 2024, at 5:00 pm.

MIDF Amanah Investment Bank Bhd is the IPO's principal advisor, sponsor, underwriter, and placement agent.