KUALA LUMPUR (May 3): Penang-based automated test equipment (ATE) maker TT Vision Holdings Bhd is looking to raise RM25.27 million via a private placement of up to 23.4 million shares or 5% of its enlarged share base.

This is the group’s first fund-raising exercise since its listing on the Bursa Malaysia ACE Market in January last year.

In an announcement to Bursa, TT Vision said the issue price of the placement is to be determined at a later date. The proceeds to be raised are based on an illustrative price of RM1.08.

The bulk of the estimated proceeds of RM24.99 million will be used to fund its 15% stake in a joint venture (JV) company with Autowell (Singapore) Pte Ltd (ASPL), a wholly-owned unit of China-based Wuxi Autowell Technology Co Ltd. The JV was announced on March 18, with ASPL holding an 85% stake.

They plan to set up a manufacturing base in Malaysia for the research and development, production and sales of automation equipment and related hardware and software products intended for Southeast Asia, Europe and America, particularly in the field of solar energy.

Citing Precedence Research, TT Vision said market penetration in the solar sector is expected to increase, with the global solar energy market growing from US$195 billion in 2023 to US$678.81 billion in 2032, while the market in the Asia Pacific region is expected to grow from US$67 billion in 2023 to US$230.79 billion in 2032.

“Key growth areas include China, United States, India, Germany and Brazil, driven by efforts to reduce carbon dioxide emissions. Growth is expected to be propelled by both rooftop and utility-scale solar installations,” the group said.

“The group is strategically positioned to capitalise on emerging market trends, improve product offerings, and extend its geographical presence. With these efforts, the group aims to achieve robust financial performance and provide value to its stakeholders for FY2024 and beyond,” it added.

KAF Investment Bank has been appointed as the adviser and placement agent for the private placement exercise, which is expected to be completed in the second half of 2024.

At Friday’s close, shares of TT Vision rose three sen or 2.54% to RM1.21, valuing the group at RM566.28 million. The counter has risen over 47% year to date and 256% against its initial public offering price of 34 sen.