Cosmos Technology International has signed an underwriting agreement with Mercury Securities in conjunction with the Company’s initial public offering (IPO) on the ACE Market of Bursa Securities.
The listing exercise, which has been approved by Bursa Securities, comprises a public issue of 64,125,300 new ordinary shares.
Mercury Securities will underwrite a total of 20,705,000 new shares, comprising 12,825,000 Shares to be made available to the Malaysian public via balloting and 7,880,000 Shares to be set aside for eligible Directors, employees and persons who have contributed to the success of Cosmos and its subsidiaries, given the Underwriting Agreement.
Cosmos is an investment holding company and through its subsidiaries- integrated water technology solutions provider principally involved in the distribution and instrumentation services of fluid control products and manufacturing of fabricated metal products for industrial applications used in the water, wastewater and oil and/or gas industries.
“We see great potential for business expansion, given that water management is crucial amid rapid urbanisation and economic development, climate change, and increasing industrial requirements. At the same time, we expect the demand for the metal frames for shaker filters to grow as it is a crucial piece of equipment used in the oil and gas industry,” Managing Director of Cosmos Technology International Berhad, Dato’ Chong Toh Wee said.
“The signing of this underwriting agreement brings us one step closer to our proposed debut on the ACE Market of Bursa Malaysia, which in turn will enable us to enlarge our business capabilities. We are very pleased to have reached this key milestone and look forward to the next phase of growth in our journey as a public-listed corporation,” Dato’ Chong added.
Proceeds from the IPO will be utilised to finance the acquisition of a factory building measuring approximately 36,860 square feet located in Balakong, Seri Kembangan. The acquisition will enable the Group to consolidate the management, operations and production space of the Group in one location, in line with the Group’s strategies to continuously enhance productivity and improve effectiveness in our overall operations.
The proceeds raised from the listing exercise will also be utilised to finance the purchase of new machineries to, amongst others, meet the anticipated increase in demand from the Group’s oil and gas customers.
To recap, Cosmos was listed on the LEAP Market of Bursa Malaysia on 9 March 2020. Pursuant to this, Cosmos issued 19.24 million shares representing approximately 10% of its enlarged issued share capital at RM0.28 per share to sophisticated investors. Subsequently, the Group withdrew its listing and was delisted from the LEAP Market on 10 November 2021 to facilitate the listing on the ACE Market of Bursa Securities.
“The IPO augurs well for the Group’s strategies which will enable more opportunities for Cosmos to expand its capabilities and support its expansion and long-term plans. We are pleased to be given the opportunity to play a key role in Cosmos new corporate journey to be listed on the ACE Market of Bursa Securities,” Managing Director of Mercury Securities, Mr. Chew Sing Guan expressed.
