CPE Technology Bhd, a leading provider of engineering support services in Malaysia, is set to raise RM179.58 million through an initial public offering (IPO) on December 7, 2023. The primary objective of the IPO is to support the company’s expansion plans.
The CEO of CPE Technology, Lee Chen Yeong, has stated that the majority of the funds raised from the IPO will be used to construct new plants, purchase machinery and equipment, and acquire raw materials to optimize production. Additionally, some of the proceeds will be allocated towards repaying bank borrowings, providing working capital, covering capital expenditure, and covering expenses associated with listing process.
According to the prospectus, Malaysia’s engineering support industry (ESI) was worth RM9.98 billion in 2023, up from RM9.37 billion in 2022. CPE Technology holds a 1.55% share of the 2022 market and generated revenue of RM145.35 million during that year. The company anticipates that ESI will experience a compounded annual growth rate of 8.2%, reaching RM13.88 billion by 2027 despite challenges in the semiconductor industry.
The engineering support services sector has been growing rapidly over the years due to increasing demand for products and services across various industries such as automotive manufacturing and construction industries which require complex machines and sophisticated technologies for their operations which requires expertise engineering support service providers like CPE technology Bhd