Temasek-backed investment firm pours $74m into advanced manufacturer Hi-P

Photo credit: The Business Times

Advanced manufacturing service provider Hi-P has secured a S$100 million (US$74.1 million) investment from Temasek-backed 65 Equity Partners.

The capital injection was through the Local Enterprise Fund, a joint US$740.8 million 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.

“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, CEO 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, with Lim Chin Hu having been appointed as the VC firm’s 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 the Singapore Exchange, ST Engineering, and Kulicke & Soffa.

Part of taking on capital from the fund is for Hi-P to work toward a potential public listing in the future. The company delisted from the Singapore Exchange in 2021, when Yao Hsiao Tung – who was Hi-P’s CEO at the time – made a voluntary unconditional general offer at US$1.48 per share.

In February last year, Yao – now executive chairman of Hi-P – told The Business Times that it would look to an IPO in the future, eyeing a dual listing in Hong Kong or the US.

“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.

Currency converted from Singapore dollar to US dollar: US$1 = S$1.35.

See also: Mapping Temasek’s role in the startup space (updated)