Precision engineering services provider Ambest Group Bhd has launched its initial public offering (IPO) on the ACE Market of Bursa Malaysia, targeting gross proceeds of up to RM37.74 million.
According to its prospectus issued on Wednesday, the IPO is priced at 25 sen per share and comprises a public issue of 110 million new shares, alongside an offer for sale of 40.95 million existing shares by co-founders and selling shareholders Tan Beng Beng and Lim Eng Guan. In total, up to 29.6% of Ambest’s enlarged share capital will be made available through the listing exercise.
(From left): Ambest Group Bhd independent non-executive director Wong Thai Sun, Malacca Securities MD Lim Chia Wei, Ambest Group MD Tan Beng Beng, executive director Lim Eng Guan, independent non-executive chairman Tan Sri Samshuri Arshad, independent non-executive director Lok Man Shung and Wyncorp Advisory managing director Wong Yoke Nyen at the launch of the prospectus.
Of the total funds raised, RM27.5 million from the issuance of new shares will go towards supporting the group’s expansion plans, while RM10.24 million from the offer for sale will accrue to Tan and Lim. Based on the IPO price, Ambest is expected to have a market capitalisation of RM127.5 million upon listing.
The IPO will close on Jan 27, 2026, with the company scheduled to make its ACE Market debut on Feb 6, 2026.
Headquartered in Penang, Ambest primarily serves the semiconductor industry, providing precision machining services for customised parts and components that require high accuracy and tight tolerances. The group also offers value-added services, including sub-modular assembly and surface finishing treatments.
Ambest’s manufacturing capabilities are supported by a fleet of 44 CNC milling machines, two CNC turning machines, and seven CNC turn-milling machines, enabling the group to carry out milling, turning and integrated turn-milling processes.
In terms of fund utilisation, Ambest plans to use RM21.5 million of the IPO proceeds to partially repay outstanding term loans, which is expected to lower its borrowings and reduce interest expenses. The group also intends to acquire four computer-assisted cutting machines to enhance its production capacity.
Additionally, Ambest plans to expand its Facility 42A by constructing an extra storey, increasing the built-up area from about 2,010 square metres to 2,910 square metres. The expansion will allow for the installation of additional machinery, improved production flow, and the development of a new cleanroom facility.
Managing director Tan Beng Beng said about RM6.8 million, or 24.7% of the IPO proceeds, will be allocated for general working capital to support daily operations, including the purchase of raw materials. A further RM4.8 million, or 17.5%, will be used to cover listing-related expenses.
For the financial year ended Dec 31, 2024 (FY2024), Ambest recorded a 3% increase in net profit to RM7 million, alongside a similar rise in revenue to RM47.26 million. The Malaysian market accounted for 84% of total revenue, while overseas markets — including Singapore, Sri Lanka and Japan — contributed the remaining 16%.
Ambest’s board is chaired by Tan Sri Samshuri Arshad, an independent non-executive chairman, who is also the non-independent non-executive chairman of Binastra Corp Bhd.
Malacca Securities Sdn Bhd is acting as the principal adviser, sponsor, underwriter and placement agent for the IPO, while Wyncorp Advisory Sdn Bhd is the corporate finance adviser.
