KUALA LUMPUR (July 19): Cape EMS Bhd is offering up to 259.7 million shares in an initial public offering (IPO) as it seeks to list on Bursa Malaysia's Main Market, according to its prospectus published on the Securities Commission Malaysia's website on Monday (July 18).

Cape EMS, through its subsidiaries, is involved in aluminium die cast manufacturing, electronics manufacturing services (EMS) and supply of electronic products and related activities.

The 259.7 million public issue comprises 173 million new shares and an offer for sale of 86.7 million existing shares.

Meanwhile, a total of 205.5 million shares have been earmarked for institutional and selected investors, including bumiputera investors approved by the Ministry of International Trade and Industry, while 54.2 million shares have been allocated to the Malaysian public, the directors, eligible employees and persons who have contributed to the success of Cape EMS and its subsidiaries.

The issue price as well as the opening and closing dates of the IPO have yet to be fixed.

The group intends to use the proceeds of the IPO for the construction of a new warehouse and installation of automated storage facilities and set-up of a new clean-room facility and purchase of new automated production lines for EMS' operations.

For financial year 2021 (FY21), the group reported a net profit of RM26.26 million compared with RM20.23 million for FY20 and a revenue of RM344.33 million compared with RM168.26 million for FY20.

Hong Leong Investment Bank Bhd is the principal adviser, managing underwriter and placement agent for the IPO.