CPE Technology signs underwriting deal with KAF Investment Bank

PETALING JAYA: CPE Technology Bhd and its subsidiary companies have signed an underwriting agreement with KAF Investment Bank Bhd (KAF IB) in conjunction with the group’s listing on the Main Market of Bursa Malaysia Securities.

KAF IB is the principal adviser, underwriter and placement agent for CPE Technology’s initial public offering (IPO).

The IPO will entail a public issue of 167,828,700 new ordinary shares of CPE Technology to be allocated – 33,566,000 shares made available for application by the Malaysian public, of which 16,783,000 shares will be set aside for application by bumiputera investors including individuals, companies, cooperatives, societies and institutions; 83,915,000 shares made available by way of private placement to identified bumiputera investors approved by the Ministry of Investment, Trade and Industry of Malaysia (Miti); and 50,347,700 issue shares made available by way of private placement to institutional and selected investors, other than identified bumiputera investors approved by Miti.

In addition, 67,131,000 existing shares by way of private placement to institutional and selected investors, other than identified bumiputera investors approved by Miti, will be on offer for sale.

The group is an engineering supporting services provider involved principally in manufacturing of precision-machined parts and components and provision of computer numerical control machining services catering to a multitude of industries including, but not limited to, semiconductor, life science and medical devices, sport equipment, opto-mechanical and instrumentation industries in Malaysia and overseas.

CPE Technology executive director and group CEO Lee Chen Yeong said, “The journey to becoming a listed entity has been a long time coming for CPE Technology. I am excited that after years of hard work and perseverance, we are here at this IPO starting line with KAF Investment Bank.

“Tapping into the capital markets will help accelerate our growth plans which includes the construction of new plants, purchase of raw materials as well as purchase of new machinery and equipment as well as the relocation of existing machinery and equipment, in the immediate future.

“Over the years, we have established a quality management system (QMS) to ensure consistent products and services, ensure customer satisfaction and improve our products and services.

“The establishment of this QMS and our strict adherence to quality management has resulted in a long-standing relationship with several of our major customers from not only Malaysia, but also the United States, Singapore, Germany, Italy and Vietnam.”

The group’s QMS is accredited with ISO 9001:2015 certification from British Assess-ment Bureau, a leading ISO certification body and training provider with UKAS accreditation.

Barring any unforeseen circumstances, CPE Technology is slated to be listed by the fourth quarter of this year.