CPE Technology Bhd is set to launch its initial public offering (IPO) at a price of RM1.07 per share in an effort to raise approximately RM179.58 million. The company, which is an engineering precision parts manufacturer, will list on Bursa Malaysia’s Main Market on December 7, 2023, with an estimated market capitalization of RM718.31 million, based on an enlarged issued share capital of 671.31 million.

The IPO will consist of the issuance of 167.83 million new ordinary shares, representing 25% of the enlarged share capital. CPE mainly engages in the manufacturing of precision-machined parts and components and provides computer numerical control machining services. Its key customer industries include semiconductor, life science and medical devices, and sports equipment, with major clients in the US, Singapore, and Malaysia.

In the fiscal year ending on June 30, 2023, CPE’s net profit decreased by 10.67% to RM30.29 million from a record RM33.91 million in the previous year, while revenue increased by 4.63% to RM145.28 million from RM138.85 million. The IPO will also involve the offer for sale of 67.13 million shares, equivalent to a 10% stake, to institutional and selected investors through private placement. Of the proceeds raised