KUALA LUMPUR: Cape EMS Bhd has signed an underwriting agreement with Hong Leong Investment Bank Bhd (HLIB) and AmInvestment Bank Bhd in conjunction with its initial public offering (IPO) exercise and listing on the Main Market of Bursa Malaysia.
Cape EMS is expected to be listed in the first quarter of 2023.
In conjunction with its listing, Cape EMS's IPO will comprise 259.7 million shares, representing 28.1 per cent 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.
HLIB and AmInvestment will underwrite the 54.2 million shares made available under the retail offering tranche.
Cape EMS non-independent managing director and group chief executive officer Tee Kim Chin said the signing of the underwriting agreement marks a significant milestone ahead of the company's listing on the Main Market of Bursa Malaysia.
"We have significantly expanded our electronics manufacturing services (EMS) capabilities 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 per cent from 2019 to 2021.
"Our strength in providing end-to-end EMS solutions and dedicated manufacturing areas for our customers enables us to cater to our customer's demands and create high stickiness for our services," she said in a statement today.
Tee said the company would subsequently utilise the IPO proceeds to expedite its growth and pursue its business plans by constructing a new warehouse, installing automated storage facilities, setting up a new cleanroom facility, and purchasing automated production lines for EMS operations.
HLIB is the principal adviser, joint bookrunner and joint underwriter, while AmInvestment is the joint bookrunner and joint underwriter for the IPO.