CPE Technology Bhd, an engineering support services company, is planning to raise RM179.58 million from an initial public offering (IPO) on December 7, 2023. The main goal of the IPO is to support the company’s expansion plans. The CEO, Lee Chen Yeong, has stated that the majority of the capital raised will be used for constructing new plants and purchasing machinery and equipment to optimize production.

One of the key uses of the proceeds from the IPO will be to acquire industrial land and construct new plants, as well as to purchase new machinery and equipment. Additionally, part of the funds will be allocated to repay bank borrowings, provide working capital, cover capital expenditure and pay for expenses associated with listing process. With an issue price of RM1.07 per share and an enlarged issued share capital of 671.31 million shares, CPE Technology expects a market capitalization of RM718.31 million after IPO.

Malaysia’s total engineering support industry (ESI) was valued at RM9.98 billion in 2023, up from RM9.37 billion in 2022. CPE Technology held a 1.55% share of the ESI market in 2022 and generated revenue of RM145.35 million during that year. The company anticipates that the ESI will experience a compounded annual growth rate of 8.2%, reaching RM13.88 billion by 2027 despite challenges faced by semiconductor industry, CPE Technology remains optimistic about its future prospects