Kuala Lumpur, Sept 21 – The shares of CEKD BERHAD has been oversubscribed by 131.61 times ahead of the group’s listing on the ACE Market of Bursa Malaysia Securities Bhd.
CEKD is raising RM24.28 million from the IPO exercise.
“We are extremely grateful for the strong confidence our investors have in CEKD, our business, prospects and future plans. Our hard work to build a sustainable business has paid off,” CEKD Managing Director of CEKD Yap Kai Ning (pictured above) said.
From the proceeds, the Group will use RM8.8 million for the acquisition of a factory for Hotstar, RM3 million for purchase of new machinery, RM1.3 million for upgrade and development of computer software and server, RM4 million for repayment of bank borrowings, with the remainder to be used for marketing activities, general working capital and listing expenses.
“This is just the beginning of our corporate journey.
“The expansion plan will give a push to the growth of the group’s business,” Yap explained.
“This is also part of the strategy to increase automation and capacity to meet the demand of our new and existing clients.”
For this IPO, a total of 18,884 applications for 1,290,183,500 new shares with a value of RM619,288,080 were received from the Malaysian public, which represents an overall oversubscription rate of 131.61 times.
For the Bumiputera portion, a total of 10,413 applications for 593,591,600 new shares were received, which represents an oversubscription rate of 121.03 times.
For the public portion, a total of 8,471 applications for 695,591,900 new shares were received, which represents an oversubscription rate of 142.20 times.
Meanwhile, a total of 9,729,000 new shares available for application by the eligible directors and employees and persons who have contributed to the success of the Group have also been fully subscribed.
In addition, the Placement Agent has confirmed that the 31,132,000 shares made available for application by way of private placement have been fully placed out.
The notices of allotment will be posted to all successful applicants on or before Sept 28.
M&A Securities Sdn Bhd is the Adviser, Sponsor, Underwriter and Placement Agent for this IPO exercise.
CEKD’s listing on the ACE Market of Bursa Securities is scheduled on 29 September 2021.
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