Ambest signs underwriting deal for ACE Market IPO

KUALA LUMPUR: Ambest Group Bhd, an engineering support services provider specialising in precision machining, has signed an underwriting agreement with Malacca Securities Sdn Bhd for its proposed initial public offering (IPO) on the ACE Market of Bursa Malaysia.

Ambest said its IPO will comprise 110 million new shares and sale of 40.95 million existing shares. Of the new shares, 25.5 million will be offered to the public, 12.75 million allocated to eligible persons under the pink form scheme, 63.75 million reserved for approved bumiputra investors and eight million placed to selected investors.

Under the underwriting agreement, Malacca Securities will underwrite 38.25 million issue shares, comprising 25.5 million shares offered to the Malaysian public and 12.75 million shares allocated to eligible persons.

Ambest primarily serves semiconductor clients requiring high-precision engineering. The group specialises in precision machining for customised, close-tolerance parts, supported by milling, turning and turn-milling capabilities.

Its facilities include 41 computer numerical control (CNC) milling machines, two CNC turning machines and seven CNC turn-milling machines. The group also undertakes sheet metal fabrication through third-party subcontractors.

The group plans to use part of the IPO proceeds to repay borrowings and to purchase new machinery, including a five-axis CNC machine and a CNC horizontal machine to support higher-precision and higher-volume work.

Funds will also be set aside for working capital, including raw materials and operating expenses, while the balance will be used to defray listing-related expenses associated with the IPO.

Ambest managing director Tan Beng Beng said the signing of the underwriting agreement marks a key step in the group’s IPO process, adding that Ambest had built a solid track record over the past decade as an engineering support services provider to the semiconductor industry.