Cape EMS Berhad has signed an underwriting agreement with Hong Leong Investment Bank Berhad and AmInvestment Bank Berhad in conjunction with its initial public offering exercise and listing on the Main Market of Bursa Malaysia Securities Berhad Cape in the first quarter of 2023.
The IPO will comprise 259.7 million shares (representing c.28.1% of the enlarged issued share capital of 923.0 million shares) with a public issue of 173.0 million new shares and an offer for sale of 86.7 million existing shares.
Both the investment banks will underwrite the 54.2 million shares made available under the retail offering tranche.
Commenting on the signing of the underwriting agreement, Tee Kim Chin (Christina), the Non-Independent Managing Director/ Group Chief Executive Officer said, “The signing of the underwriting agreement marks a significant milestone for us ahead of our listing on the Main Market of Bursa Malaysia Securities Berhad. We have come a long way and expanded our EMS capabilities significantly to cover a wide range of products including wireless communications equipment and point-of-sale terminal. Our revenue from these EMS services recorded a compounded annual growth rate of 182.5% from 2019 till 2021.
Our strength in providing end-to-end EMS solutions and dedicated manufacturing areas for our customers enable us to cater to our customers’ demands and create high stickiness for our services. We will subsequently utilise the IPO proceeds to expedite our growth and pursue our business plans through the construction of new warehouse and installation of automated storage facilities, set up new cleanroom facility and purchase of automated production lines for EMS operations, just to name a few.”
Hong Leong Investment Bank Berhad is the Principal Adviser, Joint Bookrunner and Joint Underwriter while AmInvestment Bank Berhad is the Joint Bookrunner and Joint Underwriter in connection with the IPO.
