Edelteq Holdings Bhd which is trying to be listed on the ACE Market of Bursa Malaysia is facing a big problem.
Immediately after the IPO application for the company ended on Wednesday (May 17), reports emerged that Chief Executive Officer (CEO) and largest shareholder, Chin Yong Keong was being sued by his former employer Mi Technovation Bhd.
It follows allegations of breach of employment contract and abuse of legal process.
In addition, Chin Yong Keong is also alleged to have made false or misleading statements about his profile in the prospectus published by Edelteq regarding his employment history.
As a result, Mi Technovation filed the writ in the Penang High Court against Chin on May 14, according to its notification to Bursa.
This prosecution is seen to appear at an inopportune time as Edelteq is currently seeking to be listed on Bursa Malaysia's ACE Market.
As part of its IPO, the company that supplies engineering support to the chip industry issued 100 million new shares.
It represents 18.8% of its enlarged share capital, as well as an offer for sale of 43.2 million existing shares representing 8.1% of the enlarged shares through private placement to selected investors.
Based on the issue price of 24 sen per share and the enlarged share capital of 532.5 million shares, Edelteq will have a market capitalization of RM127.81 million after the listing.
Edelteq Holdings Bhd is scheduled to be listed on the ACE Market on May 30.
