CPE Technologi Bhd, a manufacturer of precision engineering parts, is set to price its shares at RM1.07 for its initial public offering (IPO) in an effort to raise approximately RM179.58 million. The company’s market capitalization after listing on the main market of Bursa Malaysia on 7 December 2023 is estimated at RM718.31 million, based on an enlarged issued share capital of RM671.31 million.
The IPO will consist of the issuance of 167.83 million new ordinary shares, representing 25% of the increased share capital. CPE’s primary business involves the production of precision machined parts and components, as well as providing CNC machining services. Its key customer industries include semiconductors, life science and medical devices, and sports equipment, with major customers in the US, Singapore, and Malaysia.
In the fiscal year ended June 30, 2023, CPE’s net profit decreased by 10.67% to RM30.29 million from a record RM33.91 million in the previous year, while revenue increased by 4.63% to RM145.28 million from RM138.85 million.
The IPO will also include an offer to sell 67