KUALA LUMPUR (July 14): Johor-based CPE Technology Bhd is offering up to 167.83 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 Wednesday (July 13).

CPE Technology, through its subsidiaries, is involved in engineering support services, principally in the provision of manufactured precision-machined parts and components, with over three decades of history in Malaysia and Singapore.

The 167.83 million public issue comprises 33.57 million new shares to be made available for the public, 83.92 million shares earmarked for private placements for bumiputera investors approved by the Ministry of International Trade and Industry, and 50.35 million shares made available via private placement for other institutional and selected investors.

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

According to its prospectus, the group intends to raise funds for the acquisition of new industrial land and construction of new plants, as well as new machinery and equipment.

"Our group offers precision machining services to customers from a range of countries including, but not limited to, the US, Singapore, Malaysia, Germany, Italy and Vietnam.

"In order to expand our range of precision-machined parts and components, as well as to serve and support our customers better, we continuously invest in machinery and equipment," it said.

A portion of the IPO proceeds will also be used to repay bank borrowings and for working capital purposes.

For the financial year 2021, the group reported net profit of RM18.68 million, up 84% from the previous financial year, while revenue rose 18% to RM93.44 million.

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