CPE Technology Bhd, an engineering precision parts manufacturer, is set to launch its initial public offering (IPO) at a price of RM1.07 per share in an effort to raise approximately RM179.58 million. The company’s market capitalization upon listing on Bursa Malaysia’s Main Market on December 7, 2023, is estimated to be RM718.31 million, based on an enlarged issued share capital of 671.31 million.
CPE primarily focuses on the manufacturing of precision-machined parts and components and providing computer numerical control machining services. Its key customer industries 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 and an offer for sale of 67.13 million shares equivalent to a 10% stake to institutional and selected investors through private placement