KUALA LUMPUR: CEKD Bhd's shares have been oversubscribed by 131.61 times ahead of the company's initial public offering (IPO) on Bursa Malaysia Securities Bhd's ACE Market.
The die-cutting solutions provider is raising RM24.28 million from the IPO exercise.
"We are extremely grateful for the strong confidence our investors have in CEKD, our business, prospects and future plans.
"Our hard work to build a sustainable business has paid off," CEKD managing director Yap Kai Ning said in a statement today.
From the proceeds, the company will use RM8.8 million for the acquisition of a factory for its wholly-owned subsidiary, Hotstar (M) Sdn Bhd, RM3.0 million for the purchase of new machinery, and RM1.3 million for upgrade and development of computer software and server.
Besides that, the company will allocate RM4 million for repayment of bank borrowings, with the remainder to be used for marketing activities, general working capital and listing expenses.
"This is just the beginning of our corporate journey. The expansion plan will give a push to the growth of the group's business.
"This is also part of the strategy to increase automation and capacity to meet the demand of our new and existing clients," said Yap.
For this IPO, a total of 18,884 applications for 1,29 billion new shares with a value of RM619.29 million were received from the Malaysian public, which represents an overall oversubscription rate of 131.61 times.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for this IPO exercise.
CEKD's listing on the ACE Market of Bursa Securities is scheduled for September 29, 2021.