CPE TECH MAKES ITS DEBUT ON MAIN MARKET AT 17 SEN DISCOUNT
- by XM Admin
KUALA LUMPUR, Dec 7 (Bernama) – CPE Technology Bhd made its debut on Bursa Malaysia’s Main Market today at 90 sen, a discount of 17 sen compared to its initial public offering (IPO) price of RM1 .07.
At the opening bell, the engineering support services provider making precision-machined parts and components and providing computer numerical control machining services saw 6.31 million shares traded.
CPE Technology executive director and chief executive officer Lee Chen Yeong said the IPO proceeds will be used to purchase new machinery and equipment and the relocation of existing ones.
“A portion of the proceeds will also be allocated for the purchase of raw materials to be stocked on-site to ensure a continuous supply.
“By investing in these efforts, we will be in a better position to capture a bigger market share, especially with the projected growth of the engineering supporting industry in Malaysia in the coming years; he told reporters after the group listing here today.
CPE Technology raised RM179.58 million from the IPO via the issuance of 167.83 million new ordinary shares, following an oversubscription rate of 17.69 times.
Lee added that CPE Technology is planning to purchase land in Ulu Tiram, Johor to build a new plant, with an IPO allocation of RM69.60 million for the project.
The new plant, with a total built-up area of 236,948 square feet, will be used for the group’s manufacturing activities, he said.
Its order book as at Oct 23, 2023 stood at RM69.27 million, Lee said.
Citing a report by independent market researcher Protege Associates Sdn Bhd, Lee said Malaysia’s engineering supporting industry is forecast to grow to RM9.98 billion in 2023 from RM9.37 billion in 2022.
‘(The industry in Malaysia) will further expand to RM13.88 billion in 2027 at an compound annual growth rate of 8.2 per cent with growth expected to be spurred by technology advancement and in end-user markets expansion,” he added.