CPE Technology Bhd, a precision parts manufacturer, is set to launch an initial public offering (IPO) in December 2023 with a 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, which represent 25% of its enlarged issued share capital of 671.31 million.
The IPO will also involve the sale of 67.13 million shares, equivalent to a 10% stake, to institutional and selected investors through private placement. A portion of the proceeds will be used for the acquisition of new industrial lands and construction of new plants and equipment, bank borrowing repayment, working capital expenditure, and other capital expenditures as well as estimated listing expenses.
CPE’s net profit decreased by 10.67% in the fiscal year ending June 30, 2023 compared to the previous year’s record RM33.91 million while revenue increased by 4.63%. The company primarily manufactures precision-machined parts and components and provides computer numerical control machining services to key customer industries such as semiconductor, life science and medical devices, sports equipment with major clients in the US, Singapore and Malaysia respectively.
Post-IPO, CPE’s largest shareholders include group CEO Lee Chen Young who will hold a 32.5% stake in the company; non-independent non-executive director Foo Ming (19.5%) and executive director Mu Woon Chai (13%).