KUALA LUMPUR: Engineering supporting services provider CPE Technology Bhd (CTB) signed an underwriting agreement with KAF Investment Bank Bhd (KAF) for its upcoming main market listing in Bursa Malaysia.
CTB executive director and group chief executive officer Lee Chen Yeong said the journey to becoming a listed entity has been a long time coming for the company.
"Tapping into the capital markets will help accelerate our growth plans, which include the construction of new plants, the purchase of raw materials, the purchase of new machinery and equipment, and the relocation of existing machinery and equipment in the immediate future," he said in a statement.
CTB's initial public offering (IPO) The IPO exercise will entail the issuance of 167.82 million shares, of which 33.56 million will be for the public and 16.78 million shares will be for Bumiputera investors, including individuals, companies, cooperatives, societies and institutions.
83.91 million shares will be via private placement to identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI) and
50.34 million shares will be allocated to other institutional and selected investors.
In addition, 67.13 million shares will be allocated through private placement to institutional and selected investors, other than identified Bumiputera investors approved by the MITI, who will also be on offer for sale.
Lee said CTB aims to demonstrate to the public its capabilities in the engineering-supporting industry in Malaysia.
"Over the years, we have established a quality management system (QMS) to ensure consistent products and services, customer satisfaction, and improve our products and services.
"The establishment of this QMS and our strict adherence to quality management has resulted in a long-standing relationship with several of our major customers from Malaysia and the United States, Singapore, Germany, Italy and Vietnam," he said.
The funds raised by the IPO will be utilised to acquire new lands for the construction of new plants to increase the company's production capacity to cater to the increasing demand.
The total built-up area of the new plants is estimated to be 236,948 sq ft.
Upon construction of the new plants, the total built-up area of all plants is estimated to increase by approximately 245.32 per cent or 236,948 sq ft.
Aside from this, CTB also intends to purchase approximately 106 new machinery and equipment units.
As part of reducing its carbon footprint, CTB also intends to equip the new plants with an industrial-scale solar photovoltaic (PV) system.
CTB is slated to list on the main market of Bursa Malaysia by the fourth quarter (Q4) of 2023.
KAF is the principal adviser, underwriter, and placement agent for CTB's IPO.