Temasek-backed 65 Equity Partners invests $100m in local contract manufacturer Hi-P
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Hi-P executive chairman and founder Yao Hsiao Tung said the firm looks forward to working with 65 Equity Partners to hone its business strategy.
PHOTO: BT FILE
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SINGAPORE – Temasek-backed investment firm 65 Equity Partners has invested $100 million in local advanced manufacturing company Hi-P.
The capital injection into the company, a contract manufacturer for the likes of Amazon, Dyson and Tesla, will come from 65 Equity’s Local Enterprise Fund, a $1 billion joint fund with the Singapore Government, led by the Ministry of Trade and Industry.
Hi-P also announced on July 9 that it will partner with 65 Equity to develop new business and leadership succession plans.
The firm will leverage 65 Equity’s network to expand its board of directors, with 65 Equity also securing a board seat and playing an active role in helping Hi-P pursue a potential public listing.
Hi-P executive chairman and founder Yao Hsiao Tung said: “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.
“With its investment strategy, expertise and network, I have no doubt that 65 Equity Partners is the right partner on this journey.”
Founded in 1980, Hi-P also has operations in the Philippines, Malaysia, Vietnam and India.
The firm delisted from the Singapore Exchange in 2021 but told The Business Times in 2023 that it is considering a public listing again by late 2024 or early 2025, possibly with a dual listing on the US or Hong Kong stock exchanges.
When asked by The Straits Times, Hi-P said it has not decided on a location for the listing and is “evaluating different options” with 65 Equity.
The firm expects its revenue to exceed $2 billion in 2024, up from $1.6 billion in 2021.
Mr Tan Chong Lee, 65 Equity Partners’ chief executive, said the investment firm was drawn to Hi-P’s established market position and track record as one of the leading advanced manufacturers in Asia.
He added: “Mr Yao and his team now have their eyes set on the global stage and we are eager to partner them in their next phase of growth. This partnership also aligns with our mandate of investing in founder-led businesses with high growth potential.”
His firm was established in 2021 as a wholly owned subsidiary of Temasek. The platform currently manages the Anchor Fund and the Local Enterprise Fund.
The Anchor Fund invests in late-stage private funding and initial public offerings of high-growth companies, while the Local Enterprise Fund, announced in Budget 2021, helps large local enterprises transform and scale up.
