Standing from left to right: CBH executive director Cheah Min Heng, CBH Engineering Sdn Bhd director Cheah Boon Kiat, CBH executive director Cheah Boon Huat, Mercury Securities head of corporate finance Eric Chong Soo Keng Sitting: CBH managing director Cheah Boon Hwa (left), Mercury Securities managing director Chew Sing Guan
KUALA LUMPUR: ACE Market-bound CBH Engineering Holding Bhd has entered into an underwriting agreement with Mercury Securities Sdn Bhd for its upcoming initial public offering (IPO).
CBH’s IPO consists of 486.1 million ordinary shares, which includes a public issue of 298 million IPO Shares and an offer for sale of 188.1 million IPO Shares.
Of the IPO Shares, 94 million issue shares will be made available to the Malaysian public via balloting, while 28.4 million issue shares will be allocated for eligible directors, employees, and persons who have contributed to the success of the group (pink form allocations).
Additionally, 128.5 million issue shares will be made available by way of private placement to selected investors.
The remaining 47 million issue shares and 188.1 million offer shares will be made available by way of private placement to selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
Pursuant to the underwriting agreement, Mercury Securities shall underwrite 122.5 million issue Shares made available to the Malaysian public and pink form allocations.
Managing director Cheah Boon Hwa said the industry outlook is positive with Malaysia emerging as a data centre hub.
"Moreover, local and global technology giants such as Microsoft, Google, Amazon, and Telekom Malaysia are making significant investments to develop hyper-scale data centres and cloud services in the country.
“Additionally, increasing foreign and domestic investments are boosting development of commercial and industrial properties along with supporting infrastructure, creating more opportunities for M&E engineering service providers like us.”
CBH is scheduled to be listed in January 2025, with Mercury Securities as the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO exercise.
