Ambest Group Berhad

Date of Prospectus: 21 January 2026

Ambest Group Berhad IPO: Precision Engineering Growth Story with Strong Financials and Market Positioning

Ambest Group Berhad’s highly anticipated IPO on the ACE Market of Bursa Malaysia offers investors exposure to Malaysia’s growing precision engineering sector. This in-depth analysis covers the IPO structure, financial health, use of proceeds, management, risk factors, growth strategy, and what investors can expect on listing day. Backed by a decade-long track record, robust margins, and a clear expansion plan, Ambest’s listing is one of the most closely watched for 2026.

IPO Snapshot: Key Details, Offer Structure, and Use of Proceeds

IPO Symbol: Not explicitly disclosed.
Offer Price: RM0.25 per share
Total Offer Size: 150,953,000 shares
Public Issue: 110,000,000 new shares (21.57% of enlarged share capital)
Offer for Sale: 40,953,000 shares (8.03% of enlarged share capital)
Post-IPO Outstanding Shares: 510,000,002 shares
Market Capitalisation upon Listing: RM127.5 million
Application Period: 21 January 2026 (10:00 a.m.) to 27 January 2026 (5:00 p.m.)
Listing Date: 6 February 2026

Use of Proceeds:

• Debt Repayment: RM12.0 million (43.64%)
• Purchase of New Machineries: RM3.9 million (14.18%)
• General Working Capital: RM6.8 million (24.73%)
• Listing Expenses: RM4.8 million (17.45%)

This is both a growth and deleveraging story: Nearly half the proceeds will reduce borrowings, improving the balance sheet, while the rest supports capacity expansion and working capital.

Dividend Policy and Shareholder Return Outlook

No dividends were declared or paid during the track record period or up to the latest practicable date. The company does not commit to a fixed payout ratio or formal dividend policy. Future dividends will depend on profits and available funds above working capital needs. There will be no dividends prior to or upon completion of the listing.

Allocation Breakdown: Retail, Institutional, Promoter, and Employee Participation

Lock-up/Moratorium: Entire promoter shareholdings are under a 6-month moratorium; 45% of share capital to remain locked for another 6 months; up to one-third per annum may be sold thereafter on a straight-line basis.

Investor Participation, Tranche Allocations, and Institutional Demand

Bumiputera Participation: At least 12.5% of shares upon listing are allocated to Bumiputera investors approved by MITI, and at least 50% of the balloted public tranche is reserved for Bumiputera public investors.
Employee/Contributor Participation: 12,750,000 shares (Pink Form) for employees, directors, and contributors.
Clawback and Reallocation: If undersubscribed in any tranche (public, MITI, employee), shares are reallocated to other eligible groups to ensure a broad shareholder base and public spread.

Oversubscription metrics, anchor/institutional investor names, and final book quality are not disclosed. However, the structure is designed to ensure strong retail and institutional participation, especially among Bumiputera and strategic investors.

Deal Structure, Underwriting, and Key Advisors

Principal Adviser, Sponsor, Underwriter, and Placement Agent: Malacca Securities Sdn Bhd
Corporate Finance Adviser: WYNCORP Advisory Sdn Bhd
Reporting Accountants: Grant Thornton Malaysia PLT
Legal Counsel: Zaid Ibrahim & Co
Issuing House: Malaysian Issuing House Sdn Bhd

Underwriting: 38,250,000 shares (public balloting and Pink Form) are fully underwritten by Malacca Securities Sdn Bhd.
Placement Fee: Up to 2.25% for placement shares.
No stabilization/over-allotment (greenshoe) option is present.

Given the comprehensive underwriting and experienced deal parties, listing-day performance is likely to be well supported based on the structure.

Business Model, Products, Customers, and Sector Position

Ambest Group Berhad is a precision engineering solutions provider with over a decade of operating history. The group, via wholly-owned Ambest Technology Sdn Bhd, specializes in the manufacturing of precision-machined parts and components for industrial, electrical, electronics, and custom engineering applications.
Key Revenue Streams:

• Precision machining (main contributor: 80%+ of revenue during the track record period)
• Fabrication of industrial engineering parts and products
• Custom manufacturing and cleanroom-based engineering

Key Customers: Customer concentration is high, with two major customers contributing 82.3%, 72.6%, 69.3%, and 82.8% of revenue in FYE 2022, FYE 2023, FYE 2024, and FPE 2025 respectively.
Geographical Mix: Predominantly domestic (Malaysia: 83-100% of revenue in most periods), with some exports to Singapore, Sri Lanka, USA, Switzerland, and Thailand.

Financial Performance and Balance Sheet Strength

Ambest Group demonstrates:

• Consistently strong margins (Gross: 22-30%, Net: 12-15%)
• Solid profit generation with annual PAT above RM5 million throughout the review period
• Healthy current and gearing ratios, improving further with IPO proceeds
• Revenue volatility, with a dip in FYE 2023 and recovery in FYE 2024

Market Position, Competitive Strengths, and Brand Value

Competitive Advantages:

• Over 10 years of operating history
• Long-standing relationships with major customers
• Strong technical expertise and proven track record in precision manufacturing
• Shariah-compliant shares, broadening investable universe

Brand: “Ambest” trademark registered and valid until 2032.

Management and Key Senior Leadership

Directors:

• Tan Beng Beng – Managing Director
• Lim Eng Guan – Executive Director
• Wong Thai Sun – Independent Non-Executive Director
• Lok Man Shung – Independent Non-Executive Director
• Goh Liuh Yih – Independent Non-Executive Director

Key Senior Management:

• Chong Chun Chieh – Chief Financial Officer
• Khoo Tiang Seng – Quality Assurance Manager
• Kwek Boon Ping – Production Manager
• Lim Jit Yit – Assistant General Manager

Sector Trends, Timing, and Market Environment

Sector: Engineering supporting services, precision machining, and component manufacturing, serving Malaysian and select international industries.
Demand Drivers: Malaysia’s industrial growth, E&E sector expansion, and increasing demand for high-precision engineering solutions.
Seasonality and Cyclicality: Not explicitly highlighted as material.
Timing: The IPO is timed for listing on 6 February 2026, with application open from 21 to 27 January 2026.

Recent Developments:

• Completion of a group restructuring, with Ambest Technology becoming a wholly owned subsidiary
• Significant investments in new facilities, machinery, and cleanroom expansion
• Ongoing efforts to broaden customer and sector reach

The market environment appears conducive for a precision engineering IPO, with sector growth and a strong institutional allocation to Bumiputera and strategic investors.

Key Risks: Customer Concentration, Legal, and Operational Exposures

Major Risks Disclosed:

• High customer concentration: Top two customers contributed 69-83% of revenue in recent years
• Potential loss of major customers could materially impact revenue and profit
• Competition for skilled labor
• Macroeconomic, policy, and regulatory changes
• Operational risks: Capacity, supply chain, and expansion execution
• No minimum subscription for the IPO (listing may not proceed if public spread unmet)

No material legal proceedings, regulatory actions, or contingent liabilities are stated.

Growth Strategy: Expansion, Capex, and Market Entry Plans

Expansion Plans:

• Facility expansion: Upgrading Facility 42A to increase manufacturing space and add a new cleanroom
• Capex: RM3.9 million for two new CNC machines—expected to add 4% to annual production capacity
• Working capital to support higher raw material purchases (RM6.8 million allocated)
• Broaden customer base, including targeting new industries (no confirmed orders yet)

Ownership, Lock-ups, and Post-IPO Structure

Valuation: Price-Earnings and Book Value Multiples

No direct peer comparisons or sector performance tables are included in the prospectus.

Analyst Coverage and Independent Opinions

No explicit analyst recommendations, price targets, or covering institutions are disclosed.

IPO Allotment and Subscription Results

Final subscription and bookbuild outcomes by tranche are not stated.

Listing Outlook and First-Day Performance Inference

Based on the facts disclosed:

• Strong institutional and retail allocation structure (notably Bumiputera and employee tranches)
• Solid multi-year profitability, high gross and net margins, and a healthy balance sheet
• Clear post-IPO expansion and deleveraging plan
• Promoter lock-up aligns interests with public investors

On balance, the IPO appears reasonably priced for a mid-sized engineering company with scalable prospects but concentrated customer risk. The effective P/E of ~18x is not excessive given sector growth, but not a deep value play. Given the book structure, moratoriums, and the company’s financial health, listing day support and a firm first-day performance appear likely, with potential for moderate upside if sector sentiment remains constructive.

How to Access the Prospectus and Apply for Ambest Group Berhad IPO

Prospectus Access: The full prospectus can be viewed or downloaded at www.bursamalaysia.com

Application Channels: Investors may apply via participating brokers, banks, and e-IPO platforms. The application form is provided in printed format only. Application is open from 21 January 2026 (10:00 a.m.) until 27 January 2026 (5:00 p.m.).

Eligibility: Citizens, companies, societies, and institutions incorporated or organized under Malaysian law. Details and instructions are available at www.bursamalaysia.com.

Conclusion: Investment Considerations for Ambest Group Berhad IPO

Ambest Group Berhad’s IPO offers investors access to a well-established and profitable precision engineering business with a strong domestic footprint and expansion ambitions. While the company’s concentrated customer base remains a key risk, its healthy margins, prudent IPO structure, and growth strategy may appeal to investors seeking exposure to Malaysia’s manufacturing and engineering sector. Careful consideration of the company’s customer concentration and market valuation is advised, but the overall outlook for listing day is positive given the facts disclosed.