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CPE Technology Bhd, an engineering support company, has set its initial public offering (IPO) price at RM1.07 per share as it prepares to go public on December 7. The listing on Bursa Malaysia’s Main Market is expected to raise RM179.58 million and value the company at a market capitalization of RM718.31 million, based on an enlarged issued share capital of 671.31 million shares.
Despite a drop in net profit to RM30.29 million for the financial year ended June 30, from RM33.91 million the previous year, the company reported an increase in revenue to RM145.28 million (USD1 = MYR4.6675) in FY2023. This performance comes as CPE Technology continues to serve key markets in the semiconductor, life sciences/medical devices, and sports equipment sectors with a substantial client base in the United States, Singapore, and Malaysia.
The IPO share distribution is structured to cater to various investor groups:
- Malaysian public subscriptions are set for 33.6 million shares.
- A Bumiputera investor allocation of 83.9 million shares.
- Private placements totaling over a hundred million shares for institutional and selected investors.
The proceeds from the IPO are earmarked for several strategic initiatives:
- Land acquisitions and new plants will receive RM69.6 million.
- Machinery and equipment purchases are allocated RM32.9 million.
- Loan repayments will account for RM17.5 million.
- Working capital needs are budgeted at RM46.9 million.
- Other capital expenditures will take up RM1.4 million.
- The estimated listing expenses are projected at RM11.3 million.
This financial strategy highlights CPE Technology’s commitment to expanding its operational capabilities and enhancing its competitive edge in the industry. With its upcoming listing, the company is poised for growth as it leverages the capital infusion from public and private investors alike.