Cape EMS inks underwriting agreement with 2 banks

CAPE EMS Bhd has signed an underwriting agreement with Hong Leong Investment Bank Bhd (HLIB Research) and AmInvestment Bank Bhd (AmInvest) on its listing on the ACE Market of Bursa Malaysia slated in the first quarter of 2023.

The group, which is principally involved in electronic manufacturing services (EMS), aluminium die casting and supply of electronic products, is offering 259.7 million shares under its IPO.

In conjunction with its listing, Cape EMS’s IPO will comprise of 259.7 million shares representing 28.1% of the enlarged issued share capital of 923 million shares with a public issue of 173 million new shares and an offer for sale of 86.7 million existing shares.

Out of the public issue, 54.2 million new shares are for retail offering, of which 46.2 million shares will be made available for application by the Malaysian public, while eight million shares have been reserved for eligible directors, employees and persons who have contributed to the success of the group.

Another 205.5 million shares have been allocated under institutional offering, out of which 86.7 million existing shares will be made available to approved Bumiputera investors.

Both the investment banks will underwrite the 54.2 million shares made available under the retail offering tranche. 

Cape EMS’s non-independent MD/group CEO Christina Tee Kim Chin said the company has come a long way and expanded its EMS capabilities significantly to cover a wide range of products including wireless communications equipment and point of sale terminal. 

“Our revenue from these EMS services recorded a compounded annual growth rate of 182.5% from 2019 till 2021.

“We will subsequently utilise the IPO proceeds to expedite our growth and pursue our business plans through the construction of new warehouse and installation of automated storage facilities, set up new cleanroom facility and purchase of automated production lines for EMS operations, just to name a few,” she remarked.

HLIB Research is the principal adviser, joint bookrunner and joint underwriter while AmInvest is the joint bookrunner and joint underwriter in connection with the IPO. — TMR / pic source: cape-group.com.my