Cnergenz to raise RM58m via IPO on ACE Market

KUALA LUMPUR (April 29): Cnergenz Bhd, which is en route to list on the ACE Market of Bursa Malaysia on May 24, is seeking to raise RM58 million in its initial public offering (IPO).

The Penang-based electronics manufacturing solution provider said the IPO involves the public issue of 100 milion 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.

Of the 100 million new shares, 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 in the success of the group.

Another 52.75 million shares will be reserved for private placement to identified investors, while the remaining of 12.25 million shares will be reserved for private placement to identified bumiputera investors approved by the Ministry of international Trade and industry.

The IPO is expected to raise gross proceeds of RM58 milion and shall primarily be channeled towards the group’s expansion of its operational facilities, as well as research and development expenditure and working capital purposes.

Speaking at the IPO prospectus launch on Friday (April 29), Cnergenz chief executive officer Lye Yhin Choy said the listing is in line with the company’s growth plans and strategies to scale up operations, expand integrated solutions and smart factory solution offerings, and develop its own proprietary range of solutions.

Incorporated in 2004, Cnergenz is an established electronics manufacturing solution provider specializing in surface mount technology catering to the electronics and semiconductor industries in Malaysia, Thailand and Vietnam.

Applications for the IPO have opened, starting at 10am on Friday, following the prospectus launch and will close on May 11.

At the IPO price of 58 sen per share, Cnergenz would have a market captalisation of RM288.4 million ahead of its public debut.

UOB Kay Hian is the principal adviser, sponsor, underwriter and placement agent for Cnergenz’s IPO.

Read also:
Electronic manufacturing solutions provider Cnergenz seeks ACE Market listing
Electronics manufacturing solutions provider Cnergenz inks underwriting agreement for ACE Market IPO

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