KUALA LUMPUR (Nov 25): Mechanical and electrical (M&E) engineering services provider CBH Engineering Holding Bhd has signed an underwriting agreement with Mercury Securities Sdn Bhd for its initial public offering (IPO), with its ACE Market listing scheduled for January 2025.
Under the agreement, Mercury Securities will be underwriting 122.5 million of CBH's new issue shares to be made available for the public and pink form allocations. Mercury Securities is also principal adviser, sponsor, and placement agent for the IPO.
The IPO involves the issuance of 486.1 million shares, representing 25.8% of the company’s enlarged issued share capital — comprising a public issue of 298 million new shares and an offer for sale of 188.1 million existing shares.
Of the total IPO shares, 94 million will be made available to the Malaysian public via balloting, while 28.4 million shares will be allocated to eligible directors, employees, and contributors through pink form allocations.
Another 128.5 million shares will be privately placed to selected investors, while the remaining shares will be offered to approved Bumiputera investors.
Managing director Cheah Boon Hwa said the company's IPO marks a step in unlocking greater capabilities to undertake M&E engineering projects.
“Additionally, increasing foreign and domestic investments are boosting development of commercial and industrial properties along with supporting infrastructure, creating more opportunities for M&E engineering service providers like us,” he said.
CBH specialises in electricity supply distribution systems. The company designs, installs and maintains low- to high-voltage electrical systems. It also provides mechanical engineering works for building systems, installing systems such as fire protection, plumbing, and renewable energy.
As of May 31, CBH had 13 ongoing contracts worth RM207 million, set to be completed by Dec 31, 2025. Five of these were for data centres. It is bidding for six more jobs worth RM496.1 million.