QES Group Berhad IPO

QES Group Berhad, a company involved in optical inspection and automated handling equipment is scheduled to be listed in ACE Market of Bursa Malaysia on the 8th March 2018.

The Initial Public Offering (IPO) consists of 151.66 million new ordinary shares and 75.83 millions offer for sale of existing shares at an IPO price of RM0.19 per share. 180.31 million shares will be for institutional investors, private placement & selected investors, 37.92 million shares made available for Malaysia Public and 9.27 million shares made available to the eligible directors and employees.

The IPO will raise about RM28.816 million in proceeds. Out of this, RM4.85 million is for product development, RM3.25 million will be use for general working capital, RM7 millions for repayment of bank borrowing, RM10.72 millions for capital expenditure, and the remaining RM3 million is for listing expenses.

Since QES was set up 26 years ago, QES is principally involved in the distribution of inspection, test and measurement equipment, materials and engineering solutions. It also manufactures optical inspection equipment and automated handling equipment.

The IPO proceeds would allow the group to develop three key products under its manufacturing division, expand its recurring income segment, diversify its market and product line-up in the distribution division.

QES said the development of three key products namely FAVIS (Fully Automated Vision Inspection System), AWPS (Automatic Wafer Packing System) and AWID (Automatic Wafer ID) will form the pillars of growth for the company’s manufacturing division and increase revenue for the group.

It said the FAVIS, AWPS and AWID are expected to be fully developed and ready for commercial sale within the next 12 to 24 months after the group’s listing.

These new products will be source of revenue growth while enabling their customers to automate their inspection and handling processes

More information regarding the company can be found in QES Group Berhad webpage.

For the time being, QES Group does not have any fixed dividend policy.

The table below is the financial summary of QES Group.

FYE 2014 FYE 2015 FYE 2016 FPE 2016 FPE 2017
Revenue (RM’000)  105,381  128,000  137,285  94,497  139,634
Profit after Tax (RM’000)  5,229  7,095  9,460  6,401  11,854
Earnings per Share (sen)*  0.69  0.94  1.25  –
Price Earnings Ratio (x)*  27.55 20.31  15.23  –


* Based on number of shares post IPO
M&A Securities is the adviser, sponsor, underwriter and placement agent of the IPO.

On the Moratorium on shares, the promoters of QES Group IPO will not be able to sell, transfer or assign their entire shareholdings for a period of 6 monts from the date of listing. For the subsequent 6 months, the promoters must hold at least 45 percent of shares of the total number of shares issued. After that, the promoter may sell, transfer or assign up to maximum of 1/3 per annum of those shares held under moratorium.

For those who are interested in QES Group IPO, you may subscribe at ATM machines or via Internet Banking.

The retail subscription period is opened until 23rd February 2018 at 5pm. Tentative balloting date is on 27th February while the allotment date is on 5th March 2018. QES Group stock name in Bursa Malaysia is “QES”.

View QES Group prospectus in Bursa Malaysia webpage.

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