CPE Technology Bhd, a company that specializes in providing engineering support services, is planning to raise RM179.58 million from an initial public offering (IPO) on December 7, 2023. The main objective of the IPO is to support the company’s expansion plans. According to CEO Lee Chen Yeong, most 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 expenses associated with 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.

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