Hildrics Capital backs Malaysian rubber producer

Hildrics bought about 48.6m shares via its debut fund, according to a filing dated June 14. The stock has been trading around MYR 0.10 since February, giving it a market capitalisation currently around MYR 56.2m (USD 12.2m).

Hildrics was founded in 2021 by Kee Siong Choo and Teng Chuen Wee, both previously of UOB, and Daniel Poh, formerly of SEAVI Advent Private Equity and PwC. The firm closed its first fund on SGD 120m (USD 89.6m) in May last year with a view to providing growth capital to established and growing middle-market companies in Southeast Asia.

Hildrics Asia Growth Fund is mandated to write checks in a range of SGD 10m to SGD 30m and aims to achieve exits within two to three years. A minimum of 50% of the portfolio is expected to be Singapore based. Industrials, manufacturing, consumer, clean energy, and technology are preferred sectors.

The idea is to build out businesses not covered by global PE funds. Target companies typically have growth potential but lack the financial sophistication and resources to scale to the next level.

Founded in 1997, GIIB provides rubber-related products and services to more than 60 global markets. Its core offering includes latex gloves, fleet truck tyre treads, hydraulic hoses, and construction materials such as bridge bearings.

Revenue for the 2022 financial year rose 45% to MYR 53.5m compared to 2020, the most recent reported year. During this period, the net loss narrowed from MYR 39.8m to MYR 20.3m. The company cited various pandemic-related constraints on economic activity; gloves were introduced to the product portfolio during this period.

Hildrics’ previous investments include cinema management business MM Connect, food ingredients maker SMC, and marine engineering and services provider Kim Heng, with the latter providing an exit for Credence Partners. All three companies are Singapore based. Kim Heng is listed on the Singapore Exchange, while MM Connect has a listed subsidiary, MM2 Asia.

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• Topics
• Southeast Asia
• Industrials
• PIPEs
• Malaysia
• Growth capital
• manufacturing