CPE Technology, an engineering support services company, is planning to launch an initial public offering (IPO) on 7 December 2023, with the goal of raising RM179.58 million. The funds raised will primarily be used to support the company’s expansion plans, including building new factories, purchasing machinery and equipment, and procuring raw materials to optimize production.

One of the key areas where the proceeds from the IPO will be allocated is the purchase of industrial land and construction of new plants, as well as the acquisition of new machinery and equipment. In addition to these investments, part of the funds will be used to pay off bank loans, provide working capital, cover capital expenditures and costs associated with listing process. At an issue price of RM1.07 per share and an increased issued share capital of 671.31 million shares, CPE Technology is expected to have a market capitalization of RM718.31 million after the IPO.

According to a prospectus filed with Bursa Malaysia Securities Berhad (BMSB), Malaysia’s engineering support industry was worth RM9.98 billion in 2023, up from RM9.37 billion in 2022. CPE Technology held a market share of 1.55 percent in 2022, generating revenue of RM145.35 million that year. The company forecasts that ESI will experience a compound annual growth rate (CAGR) of 8.2 percent over five years ending in 2027, reaching RM13.88 billion by then

By Editor

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