CBH Engineering Holding Berhad announced that its IPO  has been oversubscribed by 34.21 times ahead of its listing on the ACE Market of Bursa Malaysia Securities Berhad.

The IPO entails a public issue of 298.0 million new ordinary shares at an issue price of RM0.28 per share, representing 15.8% of the enlarged share capital with RM83.4 million expected to be raised. Additionally, there is an offer for sale of 188.1 million existing shares, representing 10.0% of the enlarged share capital, by way of private placement to selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry of Malaysia.

In respect of the 94.1 million Issue Shares allocated to the Malaysian public, CBH has received a total of 24,992 applicants for 3,311,432,200 Issue Shares with a value of approximately RM927.2 million, representing an overall subscription rate of 34.21 times.

Commenting on the positive response from investors, Managing Director of CBH, Ir. Cheah Boon Hwa said, "The positive response to our IPO reflects the market's strong confidence in CBH's potential and capabilities. This achievement marks a pivotal moment as we channel the proceeds to enhance our financial capacity, broaden our expertise, and scale up to handle larger, higher-valued projects. With Malaysia's M&E engineering sector poised for robust growth, we are committed to delivering exceptional engineering solutions that meet the evolving demands while driving innovation and raising industry standards."

From the RM83.4 million to be raised from the IPO, CBH has allocated RM38.5 million (46.2%) towards the procurement of equipment and components for future projects. In addition, RM18.5 million (22.2%) is allocated as payment to subcontractors for future projects, RM17.3 million (20.7%) is earmarked as bank guarantees for future projects, RM3.5 million (4.1%) towards the recruitment of engineers and other personnel, and the remaining RM5.7 million (6.8%) will be used towards listing expenses.

CBH is scheduled to be listed on the ACE Market of Bursa Securities on Thursday, 16 January 2025. Upon listing, it will have a market capitalisation of approximately RM526.7 million based on the issue share price of RM0.28 per share and the enlarged share capital of 1,880.9 million shares.

Mercury Securities Sdn Bhd is the Principal Adviser, Sponsor, Sole Underwriter and Sole Placement Agent for the IPO exercise.

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