Kuala Lumpur, August 2: CEKD BERHAD , a die-cutting solutions provider as well as manufacturer of die-cutting moulds and trader of related consumables, tools and accessories, has signed an underwriting agreement with M&A Securities Sdn Bhd.
This underwriting agreement is a precursor to the upcoming initial public offering of the Company on the ACE Market of Bursa Malaysia Securities Berhad that will take place in September.
“The signing of the underwriting agreement brings us closer towards our goal of taking CEKD public through an IPO,”Managing Director of CEKD Berhad, Ms. Yap Kai Ning said in a statement.
“As one of the leading custom die-cutting solutions providers in Malaysia, we believe that this will be extremely beneficial for CEKD in strengthening and solidifying our position in the industry from an operational and financial standpoint.”
As reported in the prospectus exposure on the Securities Commission’s website, CEKD’s IPO entails a proposed public issue of 50.59 million shares where 9.73 million shares will be made available for application by the Malaysian public.
An additional 9.73 million will be allocated to eligible directors, employees, and contributors to the company; another 6.81 million shares will be reserved for private placement to selected investors and 24.32 million shares will be reserved for private placement to Bumiputera investors approved by the Ministry of International Trade and Industry.
Under the agreement, M&A Securities will underwrite 19.46 million of the total proposed issue of shares allocated to the Malaysian public or through pink forms.
The balance of 31.13 million issue shares available for application by Bumiputera investors approved by MITI and selected investors will not be underwritten and will be placed out by the M&A Securities.
CEKD’s principal market is mainly from Malaysia which contributed 85 per cent of the overall revenue in the financial year ending August 31, 2020.
CEKD’s customers are mainly from the paper printing and packaging, electrical and electronics, automotive, plastic packaging, textile and leather industries.
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