CPE Technology Bhd is set to launch its initial public offering (IPO) on December 7, 2023, with the price of its shares set at RM1.07 each. The company aims to raise approximately RM179.58 million from the IPO. Its market capitalization upon listing on Bursa Malaysia’s Main Market is estimated to be RM718.31 million, based on an enlarged issued share capital of 671.31 million.
CPE primarily engages in the manufacturing of precision-machined parts and components and provides computer numerical control machining services. The key industries served by CPE include semiconductor, life science and medical devices, and sports equipment, with major clients in the US, Singapore, and Malaysia. In the fiscal year ending on 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 consist of the issuance of 167.83 million new ordinary shares, representing 25% of the enlarged share capital, as well as an offer for sale of 67.13 million shares equivalent to a 10% stake to institutional and selected investors through private placement