CBH Engineering sees 20% surge in ACE Market debut

The firm’s public tranche was oversubscribed by more than 34 times 

by RUPINDER SINGH 

CBH Engineering Holding Bhd marked a strong debut on the ACE Market last Friday, closing nearly 20% higher than its IPO price amid robust investor demand. 

The company’s shares opened at 33 sen, above its IPO price of 28 sen, and surged to a high of 34.5 sen before settling at 33.5 sen. 

The closing price valued the firm at over RM630 million, with a total trading volume of 393 million shares, making it the most actively traded counter on Bursa Malaysia. 

During the IPO, CBH Engineering saw its public tranche oversubscribed by more than 34 times. 

MD Cheah Boon Hwa highlighted Malaysia’s position as a hub for global technology players, including major data centre operators and tech giants like Microsoft Corp, Google LLC and Amazon.com Inc, as well as Telekom Malaysia Bhd. 

“These developments create exciting opportunities for our company. 

“We have a solid foundation” with RM83.4 million raised from the IPO, alongside an unbilled order book of RM203.7 million and a tender book of RM559.7 million. 

“The company is confident in securing “even more high-value projects, especially from global clients,” he added. 

CBH Engineering specialises in mechanical and engineering (M&E) services, including designing, installing, testing and maintaining electrical systems across various voltage levels, as well as mechanical systems such as air conditioning, ventilation, fire protection, plumbing and renewable energy solutions. 

From the IPO proceeds, CBH allocated RM38.5 million (46.2%) for procuring equipment and components for future projects. 

Another RM18.5 million (22.2%) is set aside for subcontractor payments, RM17.3 million (20.7%) for bank guarantees, RM3.5 million (4.1%) for recruiting engineers and other personnel, and RM5.7 million (6.8%) for listing expenses. 

Rakuten Trade Sdn Bhd, in its research note, projected core net earnings of RM45.8 million and RM56 million for CBH Engineering in financial year 2025 (FY25) and FY26 respectively. 

The firm issued a ‘Buy’ recommendation with a fair value target of 44 sen. “CBH Engineering plans to recruit 11 experienced engineers to expand its team from the current 73, enhancing its capacity to manage larger-scale M&E projects with efficient execution and adherence to high-quality standards,” it said. 

The research house also noted that Malaysia’s role as a hub for energy and chip manufacturing aligns with the expected growth in the data centre industry, driven by significant investments from tech giants. 

Additionally, the Malaysia Digital Economy Blueprint underscores the government’s commitment to building high-quality digital infrastructure, including data centres. 

For the third quarter of 2024, CBH Engineering reported a net profit of RM8.7 million on revenue of RM42.2 million. 

Its nine-month performance included a net profit of RM31.1 million on revenue of RM187.8 million, reflecting a net profit margin of 16.5%. 

Mercury Securities Sdn Bhd acted as the principal advisor, sponsor, sole underwriter and sole placement agent for the IPO.


  • This article first appeared in The Malaysian Reserve weekly print edition