by S BIRRUNTHA
CNERGENZ Bhd is expecting to raise RM58 million from its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia.
The Penang-based electronics manufacturing solution provider said the IPO involves the public issue of 100 million shares and an offer for sale of 50 million offer shares by way of private placement at the IPO price of 58 sen per share.
The group added that from the public issue, 25 million shares will be made available for application by the Malaysian public, while 10 million shares will be allocated for application by eligible directors and employees as well as persons who have contributed to the success of the group.
While, the remaining 52.75 million shares will be reserved for private placement to identified investors and 12.25 million shares will be reserved for private placement to identified bumiputera investors approved by the Ministry of international Trade and industry (MITI).
Cnergenz CEO Lye Yhin Choy said the IPO is expected to raise gross proceeds of RM58 million and shall primarily be channelled towards the group’s expansion of its operational facility, as well as research and development expenditure and working capital purposes.
“We are elated to have reached a new milestone with the prospectus launch today, bringing us a step closer towards becoming a listed entity on the ACE Market of Bursa Securities.
“Having been in the electronics and semiconductor space since 2004, our listing is in line with our growth plans and strategies to scale up our operations.
“We are also looking to expand our integrated solutions and smart factory solutions offerings and develop our own proprietary range of solutions,” he said during the group’s IPO prospectus launch in Kuala Lumpur today.
According to Cnergenz, applications for the IPO have opened starting at 10am today following the prospectus launch and will close on May 11, 2022.
The targeted IPO listing date of the company on the ACE Market is on May 24, 2022.
At the IPO price of RM0.58 per share, Cnergenz will have a market capitalisation of RM288.84 million ahead of its debut.
Cnergenz is an established electronics manufacturing solutions provider specialising in surface mount technology (SMT) catering to the electronics and semiconductor industries in Malaysia, Thailand and Vietnam.
The group has an established track record in providing integrated solutions that suit the evolving nature and changing technological landscape of the electronics and semiconductor industries since the commencement of its business in 2004.
It mainly serves electronics and semiconductor companies that carry out the assembly of the advanced semiconductor packaging products as well as assembly and testing of printed circuit board assembly (PCBAs).
UOB Kay Hian is the principal adviser, sponsor, underwriter and placement agent for Cnergenz’s IPO.