Thursday 28 Mar 2024
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KUALA LUMPUR (May 13): Cnergenz Bhd, which is slated for listing on Bursa Malaysia’s ACE Market on May 24, said its initial public offering (IPO)’s public portion was oversubscribed by 40.32 times. 

The Penang-based electronics manufacturing solutions provider said it received 16,186 applications seeking 1.03 billion new shares for the 25 million new shares made available for the Malaysian public under the IPO.

A total of 9,089 applications for 376.24 million new shares were received under the Bumiputera category, representing an oversubscription rate of 29.1 times, while a total of 7,097 applications for 656.85 million new shares were received under the public portion, representing an oversubscription rate of 51.55 times.

Meanwhile, Cnergenz said the 10 million new shares for its eligible directors, employees and persons who have contributed to the success of Cnergenz group have also been fully subscribed.

It added that 52.75 million shares made available for application by way of private placement to selected investors have been fully placed out.

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

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

For its financial year ended Dec 31, 2020 (FY20), Cnergenz registered a net profit of RM16.07 million, 47.39% lower than RM30.55 million in FY19, as revenue fell to RM132.82 million from RM255.98 million. 

In FY18, the group posted a net profit of RM23.29 million on revenue of RM187.75 million.

At the IPO price of 58 sen per share, Cnergenz would have a market capitalisation 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.

Edited ByEsther Lee
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