CPE Technology Bhd, a leading provider of engineering support services in Malaysia, is planning to launch an initial public offering (IPO) on December 7, 2023, with the aim of raising RM179.58 million. The main objective of the IPO is to support the company’s expansion plans.

According to CEO Lee Chen Yeong, the majority of the capital raised from the IPO will be used to construct new plants, purchase machinery and equipment, and acquire raw materials to optimize production. Additionally, part of the funds will be allocated to repay bank borrowings, provide working capital, cover capital expenditure, and pay for listing expenses. The company expects that at an issue price of RM1.07 per share and an enlarged issued share capital of 671.31 million shares, it will have a market capitalization of RM718.31 million.

Malaysia’s engineering support industry (ESI) was worth 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 compounded annual growth rate of 8.2%, reaching RM13.88 billion in 2027. Despite headwinds in the semiconductor industry, CPE Technology remains optimistic about the market’s potential due to its competitive edge and strong relationships with clients across various industries such as electronics manufacturing services (EMS), automotive manufacturing services (AMS), and food processing industry (FPI).

By Editor

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