CPE Technology makes debut on Main Market at 90 sen


KUALA LUMPUR: CPE Technology Bhd made its trading debut on the Main Market of Bursa Malaysia at 90 sen against its initial public offering (IPO) price of RM1.07.

The engineering supporting services provider was last traded at 90.5 sen with 61.22 million shares done, making it one of the most actively traded counters on Bursa Malaysia.

CPE Technology has raised RM179.58mil from its IPO via the issuance of 167.83 million new ordinary shares of the company.

Of the proceeds, it said RM69.6mil would be allocated for the acquisition of industrial land and construction of new plants.

It has allocated RM32.88mil for the purchase of new machinery and equipment as well as the relocation of existing machinery and equipment, RM17.45mil for repayment of bank borrowings and RM46.91mil for part-financing working capital expenditure requirements.

The company has also earmarked RM11.32mil for estimated listing expenses while the remaining RM1.42mil for part-financing other capital expenditure requirements.

CPE Technology currently owns four manufacturing plants, and leases an additional one in Ulu Tiram, Johor. The new plants (which are intended to be acquired), with a total built-up area estimated to be 236,948 sq. ft., will be mainly used for the group’s manufacturing activities which is expected to increase as a result of growing demand from its customers.

Assuming the group does not rent any other factories and dispose of its Plant 1, the total built-up area of all its plants (excluding the rented premises) is estimated to increase by approximately 245.32% or 236,948 sq. ft. from 96,586 sq ft to 333,534 sq ft upon completion of construction.

“Getting to this stage has been challenging but rewarding. It is a testament of the collective effort our management team and employees have poured in over the past years. Without them, CPE Technology wouldn’t be here at the start of our next chapter as a listed entity.”

“There is a strong interest from the members of the public, as demonstrated by the oversubscription of the public portion of our shares by 17.69 times. This strong support serves as a motivation for us to strive for better achievements and deliver better value to our shareholders in the coming years,” chief executive officer Lee Chen Yeong said in a statement.

KAF Investment Bank Bhd is the principal adviser, underwriter, and placement agent for the IPO.

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CPE Technology , IPO , Bursa Malaysia , Main Market

   

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