CPE Technology Seeks to Raise RM179.5 Million through IPO

CPE Technology Bhd, a leading provider of engineering support services, has announced plans to raise RM179.58 million through an initial public offering (IPO) on December 7, 2023. The company’s CEO, Lee Chen Yeong, stated that the primary objective of the IPO is to support the company’s expansion plans.

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. With an issue price of RM1.07 per share and an enlarged issued share capital of 671.31 million shares, CPE Technology expects to have a market capitalization of RM718.31 million after the IPO.

According to the prospectus, 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 2022 market, generating revenue of RM145.35 million. The company anticipates that the ESI will experience a compound annual growth rate (CAGR) of 8.2%, reaching RM13.88 billion by 2027 despite challenges in the semiconductor industry. Despite these headwinds, CPE Technology remains optimistic about the potential for growth in this sector and is excited about its future prospects as an IPO-listed company on Bursa Malaysia’s main board

Leave a Reply

Previous post Men’s College Basketball: NMU vs. Concordia-St. Paul | Latest Sports News, Games and Careers
Next post Man in Coma After Fig Gets Stuck in Throat: Institutions Deny Assistance to Family