CPE Technology inks underwriting agreement with KAF Investment Bank

KUALA LUMPUR: CPE Technology Bhd and its subsidiary companies have signed an underwriting agreement with KAF Investment Bank Bhd as the principal adviser, underwriter, and placement agent for the group’s initial public offering (IPO).

The engineering support services provider is slated to be listed on the Main Market of Bursa Malaysia Securities by the fourth quarter of 2023.

CPE Technology executive director and group chief executive officer Lee Chen Yeong said tapping into the capital markets would help accelerate the company’s growth plans.

"This includes the construction of new plants, the purchase of raw materials, as well as the acquisition of new machinery and equipment, along with the relocation of existing machinery and equipment in the immediate future.

"Backed by more than 30 years of rich history in Malaysia and Singapore, we aim to demonstrate our capabilities in the engineering support industry in Malaysia," he said in a statement.

CPE Technology announced that the IPO exercise would involve a public issue of over 167.8 million new ordinary shares.

A total of over 33.5 million shares will be made available for application by the Malaysian public, of which 16.7 million shares will be set aside for application by Bumiputera investors, including individuals, companies, cooperatives, societies, and institutions.

Over 83.9 million shares will be made available through private placement to identified Bumiputera investors approved by the Ministry of Investment, Trade, and Industry (Miti), it said.

Additionally, 50.3 million issue shares will be made available through private placement to institutional and selected investors, other than identified Bumiputera investors approved by Miti.

Furthermore, 67 million existing shares will be offered for sale through private placement to institutional and selected investors, other than identified Bumiputera investors approved by Miti. - Bernama