M&A Securities to underwrite CEKD IPO

From left: M&A Securities head of corporate finance Gary Ting, M&A Securities managing director of corporate finance Datuk Bill Tan, CEKD managing director Yap Kai Ning and CEKD deputy executive chairman Yap Tian Tion

KUALA LUMPUR: Die-cutting solutions provider CEKD Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd ahead of its initial public offering on the ACE Market of Bursa Malaysia in September this year.

Under the agreement, M&A Securities will underwrite 19.46 million of the total proposed issue of shares allocated to the Malaysian public or through pink forms, it said in a statement.

The balance of 31.13 million issue shares available for application by Bumiputera investors approved by MITI and selected investors will not be underwritten and will be placed out by M&A Securities.

CEKD’s principal market is mainly in Malaysia which contributed 85.6% of overall revenue in its financial year ended Aug 31, 2020.

CEKD’s customers are mainly from the paper printing and packaging, electrical and electronics, automotive, plastic packaging, textile and leather industries.

The company's IPO entails a proposed public issue of 50.59 million shares, comprising 9.73 miillion to be made available to the Malaysian public, 9.73 million for eligible directors, employees and contributors, 6.81 million for private placement to selected investors, and 24.32 million for private placement to Bumiputera investors.

"The signing of the underwriting agreement brings us closer towards our goal of taking CEKD public through an IPO.

"As one of the leading custom die-cutting solutions providers in Malaysia, we believe that this will be extremely beneficial for CEKD in strengthening and solidifying our position in the industry from an operational and financial standpoint," said CEKD managing director Yap Kai Ning.

M&A Securities serves as CEKD's adviser, sponsor, sole underwriter and placement agent for the IPO.

"The Company has come a long way since its inception, and we are proud to have been a part of this important milestone in its history. This IPO marks another impressive achievement for the Company, and we wish them all success and the best," said the brokerage.
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CEKD , M&A Securities , IPO , underwriter , ACE Market


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