Advertisements
Home News CPE Technology Bhd Reveals IPO Pricing for Strategic Expansion

CPE Technology Bhd Reveals IPO Pricing for Strategic Expansion

by sun

KUALA LUMPUR – CPE Technology Bhd, a leading precision parts manufacturer, has officially disclosed the pricing of its Initial Public Offering (IPO) at RM1.07 per share. The company is aiming to raise RM179.58 million ($40.2 million) through the IPO, scheduled for December 7th. With aspirations to achieve a market valuation of RM718.31 million ($160.9 million), CPE Technology is gearing up to be listed on the Main Market of Bursa Malaysia.

In a prospectus briefing conducted today, CPE Technology outlined its strategic objectives, emphasizing the utilization of IPO proceeds to bolster its global market presence and enhance production efficiency. The company plans to make substantial investments in new infrastructure, advanced machinery, and pre-purchasing key raw materials from international suppliers to counterbalance fluctuating shipping costs.

Advertisements

CEO Lee Chen Yeong provided insights into the allocation of the IPO funds, earmarking RM69.6 million ($15.6 million) for the acquisition of industrial land and the construction of a new facility in Johor. This initiative aligns with CPE’s strategy to meet escalating product demand, particularly in the semiconductor sector, where the company currently holds an unbilled order book valued at RM69.27 million ($15.5 million).

Advertisements

The public offering comprises 167.83 million new ordinary shares, complemented by a private placement offer of 67.13 million shares. CPE Technology has also delineated the distribution of the remaining funds:

Advertisements

RM32.9 million ($7.4 million) for new machinery and equipment
RM17.5 million ($3.9 million) for loan repayments
RM46.9 million ($10.5 million) for working capital
RM1.4 million ($313,000) for other capital expenditures
RM11.3 million ($2.5 million) for estimated listing expenses

Advertisements

Post-IPO, CEO Lee Chen Yeong will retain a 32.5% stake, while Foo Ming will hold 19.5%, and Mu Woon Chai will maintain a 13% stake in the company.

Advertisements
Advertisements

CPE Technology’s decision to go public strategically aligns with its aim to capitalize on its current market position. The move is intended to solidify the company’s standing in the global supply chain by expanding production capabilities and securing resources, especially amid the backdrop of volatile shipping costs impacting various industries worldwide.

 

You may also like

Rckir is a comprehensive financial portal. The main columns include foreign exchange wealth management, futures wealth management, gold wealth management, stock wealth management, fund wealth management, insurance wealth management, trust wealth management, wealth management knowledge, etc.

【Contact us: [email protected]

© 2023 Copyright Rckir.com [[email protected]]