Engineering Precision Parts Manufacturer, CPE Technology Bhd, has announced its initial public offering (IPO) at a price of RM1.07 per share. The company aims to raise approximately RM179.58 million through this IPO on Bursa Malaysia’s Main Market on December 7, 2023. Upon listing, the company’s market capitalization is estimated to be RM718.31 million based on an enlarged issued share capital of 671.31 million.
CPE primarily focuses on the manufacturing of precision-machined parts and components and providing computer numerical control machining services. Its key customer industries include semiconductor, life science and medical devices, and sports equipment with major clients in the US, Singapore, and Malaysia. In the fiscal year ending June 30th, 2023, CPE’s net profit decreased by 10.67% to RM30.29 million from RM33.91 million in the previous year while revenue increased by 4.63% to RM145.28 million from RM138.85 million
The IPO will consist of the issuance of 167.83 million new ordinary shares representing 25% of the enlarged share capital to institutional investors through private placement or retail investors via book-building method or both methods depending on demand as well as a portion for offer for sale by existing shareholders which constitute up to a maximum of 25%. Of the proceeds raised from this IPO, a portion has been earmarked for various capital expenditures such as acquisition of new industrial lands and construction of new plants, machinery and equipment expenses, bank borrowing repayment