KUALA LUMPUR (Jan 6): CBH Engineering Holdings Bhd (KL:CBHB) saw its initial public offering (IPO) of 94.05 million shares — available to the public at 28 sen apiece — oversubscribed by 34.21 times.
The ACE Market-bound mechanical and electrical (M&E) engineering services provider received a total of 24,992 applications for 3.31 billion shares with a value of RM927.2 million received from the Malaysian public, according to its statement on Monday.
Of these, a total of 12,175 applications for 1.28 billion shares were received for the Bumiputera portion, representing an oversubscription rate of 26.13 times. A total of 12,817 applications for 2.04 billion shares were received for the public portion, representing an oversubscription rate of 42.29 times.
Meanwhile, 28.42 million shares made available for application by eligible persons have also been fully subscribed, the company said.
“The sole placement agent has confirmed that 47.02 million issue shares and 188.09 million existing shares by way of private placement to selected Bumiputera investors approved by Miti (Ministry of Investment, Trade and Industry) have been fully placed out,” CBH Engineering added.
Further, the sole placement agent has confirmed that the 128.52 million shares by way of private placement to selected investors were fully subscribed.
The notices of allotment will be posted to all successful applicants on Jan 14, 2025. CBH Engineering is scheduled to be listed on the ACE Market on Jan 16.
CBH Engineering mainly provides M&E engineering services, including the design, installation, testing, and maintenance of electrical systems across various voltage levels, as well as mechanical systems like air conditioning and mechanical ventilation, fire protection, plumbing, and renewable energy.
The company has a diverse portfolio of projects, including substations, commercial properties such as data centres, shopping malls, hotels, and office towers, as well as industrial properties like manufacturing plants and warehouses, and high rise residential properties.
At the IPO price of 28 sen, CBH Engineering will have a market capitalisation of RM526.65 million upon listing, with an enlarged share capital of 1.88 billion shares. This values the company 15.91 times the earnings for the financial year ended Dec 31, 2023 (FY2023).
Mercury Securities Sdn Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.