KUALA LUMPUR: CBH Engineering Holding Bhd aims to raise RM83.4 million from its initial public offering (IPO) for business expansion.
From the amount raised, RM38.5 million (46.2 per cent) will be earmarked towards the procurement of equipment and components for future projects, while RM17.3 million (20.7 per cent) will be allocated to bank guarantees for future projects.
Additionally, RM18.5 million (22.2 per cent) will be used towards the payment to subcontractors for future projects, while RM3.5 million (4.1 per cent) will be set aside towards the recruitment of engineers and other personnel.
The remaining RM5.7 million (6.8 per cent), will be used to defray listing expenses.
CBH launched its prospectus today in conjunction with its upcoming IPO and listing on the ACE Market.
With an enlarged issued share capital of 1.88 billion shares and an IPO price of 28 sen per share, CBH will have a market capitalisation of RM526.7 million upon listing.
Applications for the public issue are open from today and will be closed on Jan 2, 2025 at 5:00 pm.
CBH will be listed on the ACE Market on Jan 16, 2025.
CBH provides electrical and mechanical engineering services.
This includes the design, installation, testing, and maintenance of electrical systems across various voltage levels, as well as mechanical systems like air conditioning and mechanical ventilation, fire protection, plumbing, and renewable energy.
"The listing is a testament to CBH's solid foundation and proven track record in the mechanical and electrical engineering services industry.
"With the proceeds from the IPO, we believe CBH will continue to build on its success and achieve even greater milestones in the years ahead," said managing director Cheah Boon Hwa in a statement.
For the eight-month period ended Aug 31, 2024, CBH reported a net profit of RM30.7 million and revenue of RM178.2 million, reflecting increases of 150.9 per cent and 126.3 per cent respectively, against the same period in 2023.
It had an unbilled orderbook of RM203.7 million and a tender book of RM559.7 million as at Nov 25.