CPE Technology Bhd, a precision parts manufacturer, is set to list on the Main Market of Bursa Malaysia on December 7, 2023, with an initial public offering (IPO) price of RM1.07 per share. The company aims to raise approximately RM179.58 million through the issuance of 167.83 million new ordinary shares, representing 25% of its enlarged share capital of 671.31 million.
CPE specializes in the manufacturing of precision-machined parts and components and provides computer numerical control machining services. Its major client industries include semiconductor, life science and medical devices, sports equipment, and key clients in the US, Singapore, and Malaysia. In the fiscal year ending June 30, 2023, CPE’s net profit decreased by 10.67% to RM30.29 million from RM33.91 million in the previous year while revenue increased by 4.63% to RM145.28 million from RM138.85 million.
In addition to the issuance of new shares, CPE will also offer for sale 67.13 million shares equivalent to a 10% stake to institutional and selected investors through private placement. The proceeds from this offering will be used for various purposes such as the acquisition of new industrial lands and construction of new plants and machinery expenses as well as bank borrowing repayment among others capital expenditures and estimated listing expenses.
CPE’s largest shareholders include group CEO Lee Chen Young who will hold a 32