KUALA LUMPUR (Nov 30): TT Vision Holdings Bhd, en route to list on the ACE Market of Bursa Malaysia in the first quarter of 2023, has signed an underwriting agreement with KAF Investment Bank Bhd (KAF IB) for its initial public offering (IPO).

TT Vision is involved in the development and manufacturing of machine vision equipment and provision of related products and services.

In a statement on Wednesday (Nov 30), TT Vision said the IPO exercise entails a public issue of 84.5 million new shares and an offer for sale of 10.5 million existing shares to selected investors by way of private placement. The enlarged issued share capital will be 468 million shares upon listing.

KAF IB will underwrite a total of 41.5 million new shares made available to the Malaysian public and under the pink form allocations.

Of the 84.5 million new shares, which represent 18.06% of the enlarged issued share capital upon listing, 43 million shares or 9.19% will be made available by way of private placement to selected investors.

TT Vision chief executive officer and executive director Goon Koon Yin said since the group was established 20 years ago, it has rode on the rise of the semiconductor industry where the earnings contribution comes from the manufacturing of machine vision equipment in relation to the inspection of optoelectronics, integrated circuits and solar cells.

"Given the long-established business relationships with our major customers who are market leaders in their respective fields, we are provided with the platforms and opportunities to grow, especially with the increasing global demand for semiconductors with the mass production of electric vehicles and growing use of renewable energy, which will undoubtedly benefit TT Vision.

"Therefore, we would like to capitalise on this opportunity and leverage our competitive strengths, where we intend to utilise the IPO proceeds to expedite our growth and pursue our business plans. The proceeds will be allocated towards repayment of bank borrowings, research and development expenditure, marketing activities, working capital and listing expenses.”

KAF IB is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO exercise.