ADVANCED manufacturing service provider Hi-P has secured a S$100 million investment from Temasek-backed 65 Equity Partners, likely with a view to a listing on the Singapore Exchange.
The capital injection was through the Local Enterprise Fund, a joint S$1 billion fund with the Singapore government to develop local companies. Hi-P and 65 Equity Partners will work on a new strategic focus and leadership succession for accelerating growth and sustainability, the fund said on Tuesday (Jul 9).
“We are drawn to Hi-P’s established market position and robust track record as one of the leading advanced manufacturers in Asia, with a diverse blue-chip customer portfolio – many of whom are among the top global players in their respective industries,” said Tan Chong Lee, chief executive of 65 Equity Partners.
Hi-P provides advanced manufacturing, production, assembly, testing and packaging services for customers such as Amazon, Apple and Dyson.
As part of the funding, 65 Equity Partners will get a seat on Hi-P’s board of directors. Lim Chin Hu was appointed as 65 Equity Partners’ representative on the board. He has over 30 years of experience with stints in Hewlett Packard Singapore, Sun Microsystems and Frontline Technologies. He currently serves on the boards of Singapore Exchange, ST Engineering and Kulicke & Soffa.
Part of taking on capital from the fund is for Hi-P to work towards a potential public listing in the future. The company delisted from the Singapore Exchange in 2021, when Yao Hsiao Tung – its founder and then chief executive – made a voluntary unconditional general offer at S$2 per share, in a deal valuing the company at S$1.6 billion.
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Yao was named Businessman of the Year at Singapore Business Awards 2023.
When contacted on Tuesday, Yao – now executive chairman of Hi-P – told The Business Times in Mandarin that the company is aiming high, and new funds are required to fuel that growth.
One of the reasons behind the delisting previously was to restructure the group’s operations. Now that the restructuring is completed, Hi-P is ready to execute its growth plans, Yao added. There are also plans to hire a new CEO after Lee Kong Ann left six months after taking over the reins in 2023.
“Having grown our capabilities, capacity and customer base over the past few years, we are excited about our prospects, and look forward to working with 65 Equity Partners to hone our business strategy,” said Yao.
65 Equity Partners was established in October 2021 by Temasek to focus on equity and structured equity investments starting with Singapore, with a view to expand to South-east Asia, Europe and the US. The Temasek subsidiary principally invests in established companies with regional or global ambitions, and which have a market value of between US$1 billion and US$5 billion.
Currently, 65 Equity Partners manages three funds – the Local Enterprise Fund; the Anchor Fund for high-growth companies to list in Singapore; and the International Fund for investing into founder-led and family-owned companies in Europe and the US. Its portfolio consists of startups such as used-car platform Carsome, and cashback and rewards platform ShopBack, alongside corporate services provider Boardroom and exhibition provider Neon.
With additional reporting by Mia Pei
