KUALA LUMPUR (Oct 6): Utilities engineering services firm Cheeding Holdings Bhd, which is set to list on Bursa Malaysia’s ACE Market on Tuesday, has secured a RM33.94 million contract from Tenaga Nasional Bhd (KL:TENAGA) to develop a power supply link for a data centre in Johor.
The contract took effect on Oct 2 and will be completed within 240 days. It is expected to contribute positively to the company’s earnings, Cheeding said in an exchange filing on Monday.
The data centre, located in Tropicana Development, Gelang Patah, is undertaken by Computility Technology Sdn Bhd, an indirect subsidiary of ZData Technologies Co Ltd, a Beijing-based provider of cloud-network convergence and digitised IT infrastructure services.
Cheeding’s initial public offering (IPO), comprising a public issue of 143 million shares and an offer for sale of 65 million shares at 36 sen apiece, garnered strong demand from investors with an oversubscription rate of 40.87 times from the Malaysian public, while private placements were fully placed out.
The listing exercise aims to raise RM75 million, of which RM51 million will accrue to Cheeding, while the rest will go to managing director Ng Kian Chai and his spouse Tan Sook Hoi, who put their existing shares for sale.
The RM51 million portion of proceeds will be used by the company to fund working capital, bank loan repayments and performance bonds.
At the IPO price of 36 sen per share, Cheeding will list with a market capitalisation of RM287.01 million. Against its earnings of RM26.35 million for the financial year ended March 31, 2025 (FY2025), the company is valued at 10.9 times.