Crest Group Launches IPO, Subscription Opens on 18 September
$CREST (0323.MY)$ is set to launch an initial public offering (IPO) on the ACE Market. The subscription period will run from 18 September to 25 September. The IPO is priced at RM0.35 per share, according to the official prospectus. The listing is scheduled for 9 October.
This Initial Public Offering (IPO) involves issuing up to 234,595,300 ordinary shares, including an offer for sale of 103,890,000 existing shares and a public issue of 130,705,300 new shares.
Out of these new shares, the company plans to offer 43,280,000 shares to the Malaysian public, 12,984,000 shares to the company's eligible directors and employees, and an offering of 74,441,300 shares to identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry through private placement.
Out of these existing shares, there will be an additional private placement of 33,758,700 existing shares to identified Bumiputera investors and 70,131,300 existing shares to selected investors.
Corporate Profile
Crest Group is a business entity that specializes in providing imaging, analytical, and testing solutions. Its range of services includes pre-sales consulting, the sale and customization of equipment, installation and commissioning, and user training for its imaging, analytical, and testing solutions. Additionally, the group provides after-sales services such as technical support, maintenance, and sales of spare parts and consumables.
Crest Group serves a diverse clientele, which encompasses end-users from industries such as semiconductors, electronics and electrical (E&E), automotive, oil and gas, aviation, life sciences, and healthcare. The group also caters to intermediaries like automation solution providers and dealers, including research and academic institutions.
Primarily operating in Malaysia, the People's Republic of China (PRC), Thailand, and Singapore, the group has established a strong regional presence. Over the financial years under review and through the Financial Period Ending (FPE) 2023, the provision of imaging, analytical, and testing solutions has been the largest contributor to the group's revenue, accounting for 73.74%, 78.11%, 83.57%, and 84.35% of the group's total revenue.
The company's business activities are as follows:
Financial Overview
The company's financial growth has been robust, with revenue increasing from RM124,425,000 in 2020 to RM187,619,000 in 2023. This surge reflects a compound annual growth rate (CAGR) of approximately 16.9%, highlighting the rapid pace of the company's business expansion. Concurrently, cost of sales has also increased accordingly, rising from RM87,871,000 to RM134,089,000.
Gross profit (GP) soared from RM36,554,000 in 2020 to RM53,530,000 in 2023, with a CAGR of about 13.8%, indicating a strong and effective enhancement in profitability.
In terms of net profit, there was an increase from RM13,502,000 in 2020 to RM20,096,000 in 2023, with a compound annual growth rate (CAGR) of about 14%. This demonstrates the company's solid operational performance and adept cost management.
Industry Overview
The Imaging, analytical, and Testing industry serves a variety of sectors including Electrical and Electronics (E&E), semiconductors, automotive, aerospace, healthcare, life sciences, materials science, oil and gas, and research (academic and clinical). This industry provides essential imaging, inspection, analysis, testing, and measurement equipment and services that help verify the performance and functionality of products, detect defects or faults, and ensure that they meet operational and safety standards and specifications.
In Malaysia, the imaging, analysis, and testing industry experienced a decline of 17.59% from MYR 5,258 million in 2019 to MYR 4,333 million in 2020, due to the economic downturn amidst the COVID-19 pandemic. However, the industry recovered and grew at a Compound Annual Growth Rate (CAGR) of 18.61%, reaching an estimated MYR 7,230 million by 2023. The growth of the industry is driven by the expansion of various industries that utilize such equipment and services, notably the E&E and semiconductor sectors.
The growth of the imaging, analytical, and testing industry in Malaysia also faces certain risks and challenges. These challenges include reliance on high-quality equipment provided by product manufacturers, as well as the need for continuous technological innovation to adapt to the rapidly evolving technological environment. In addition, the market competition is fierce, with not only local companies but also some foreign firms competing directly with local solution providers through their established entities in Malaysia.
Utilisation of proceeds
The Public Issue has successfully raised a total of approximately RM45.75 million. The allocation of these funds is strategically planned as follows:
1. Establishing a Centralized Headquarters: The largest allocation, accounting for 34.45% of the total, equates to RM15.762 million. This sum is earmarked for the establishment of a new centralized headquarters within a 36-month timeframe.
2. Business Expansion: The second significant investment, representing 31.73% of the funds, amounts to RM14.517 million. This portion is designated for business expansion initiatives over the same 36-month period.
3. Acquisition of Demonstration Equipment: A substantial 12.83%, or RM5.868 million, is allocated for the purchase of additional demonstration equipment to enhance our product showcases within 36 months.
4. Technical Support and Maintenance Team Expansion: A dedicated 7.87%, totaling RM3.6 million, will be invested in expanding our technical support and maintenance team to improve service quality within 36 months.
5. Listing Expenses: Lastly, an estimated 13.12% of the funds, which is RM6 million, is set aside to cover listing expenses, with these costs expected to be incurred within a shorter 3-month period.
Source:
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CNNT : Only 6% shares to retail investors. Is this normal? Healthy? Lawful? Ethical? Well-intended?
There is a large 77% allocated to some MITI approved list. Are these individuals or companies? They get to buy at what price? Can please give more transparency on this?
Can someone knowledgeable shed some light on this practice over here?
I'm a noob so I'm wondering what's going on and is all this in favour of the retail investors. With such a miniscule amount of shares, should we even compete for a mere 13mil shares? Will this vast amount of pre-allocated shares crash the market value in the opening day due to massive sell-off since we don't know who these special interests are and whether they are really invested in the business? You know, free stuff are not that valuable.
X5PTcmCoag CNNT : Should be 18%, 43,280,000 shares to the Malaysian public.
104421452 : All are the most stable at 99mart, and it is still rising
105018381 : For this ipo purpose, I wish my color skin is bumi brown!
101775147 AL alfijai : Where can I get that much money?
105742796 Learner : Thank you for the discussion and information. I’m learning a lot.
105038909 : You are right.
105285073 : It's good as long as it's true. Winning is good.
CNNT X5PTcmCoag : Ya, my bad!
104757867 CNNT : i think open rm2