CPE Technology Bhd, a company that offers engineering support services, is planning to raise RM179.58 million from an initial public offering (IPO) on December 7, 2023. The primary goal of the IPO is to support the company’s expansion plans. CPE Technology’s CEO, Lee Chen Yeong, has stated that the majority of the capital raised will be used to construct new plants, purchase machinery and equipment, and acquire raw materials to optimize production.

One of the key uses of the proceeds from the IPO will be to acquire industrial land and construct new plants, as well as to purchase new machinery and equipment. Additionally, part of the funds will be allocated to repay bank borrowings, provide working capital, cover capital expenditure, and pay for the expenses associated with the listing process. It is expected that, at an issue price of RM1.07 per share and an enlarged issued share capital of 671.31 million shares, the company will have a market capitalization of RM718.31 million.

According to the prospectus, Malaysia’s total engineering support industry (ESI) was worth RM9.98 billion in 2023, up from RM9.37 billion the year before. CPE Technology held a 1.55 per cent share of the 2022 market, generating revenue of RM145.35 million. The company anticipates that the ESI will experience a compounded annual growth rate of 8.2 per cent, reaching RM13.88 billion in 2027