Novo Tellus backs Singapore semiconductor industry supplier
Novo Tellus Capital Partners has invested S$23.6 million ($17.7 million) in Grand Venture Technology, a Singapore-listed provider of testing, assembly, and engineering services for semiconductor manufacturing.
The private equity firm is acquiring 71.5 million shares - the equivalent of a 23.4% stake - via its second fund, which was launched in 2019 with a target of $150 million. Grand Venture’s stock spiked 23% following confirmation of the investment and was trading at S$0.44 as of midday January 13. This gave the company a market capitalization of around S$104.2 million.
Founded in 2012, Grand Venture claims to serve some of the largest manufacturers in the semiconductor, electronics, and analytical life sciences industries via bases in Singapore, Malaysia, and China. The fresh capital will be used primarily for expansion through M&A, joint ventures, and partnerships, according to a filing. There will a minor allocation for enhancing operational and engineering capabilities.
Novo Tellus focuses on technology and industrial companies in Singapore, Malaysia, and Thailand, where it can help experienced management teams with its cross-border and operational expertise. Standout investments include MFS Technology, a Singapore-based circuit board maker acquired for $95 million in collaboration with Navis Capital Partners in 2014. It was sold to DCP Capital Partners in 2018.
Previous activity targeting Singapore-listed companies includes a S$12 million investment in IT services and data center equipment provider Procurri in 2019. That deal made Novo Tellus the company’s largest shareholder with a 12.7% stake.
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