Cosmos inks underwriting agreement with Mercury Securities for ACE Market IPO

KUALA LUMPUR, Aug 22 (Bernama) -- Cosmos Technology International Bhd has inked an underwriting agreement with Mercury Securities Sdn Bhd for its initial public offering (IPO) on the ACE Market of Bursa Malaysia.

The company said the listing exercise, which has been approved by Bursa Malaysia Securities, comprises a public issue of 64.13 million new ordinary shares.

Cosmos said pursuant to the agreement, Mercury Securities will underwrite a total of 20.71 million new shares, of which 12.83 million shares are to be made available to the Malaysian public via balloting while 7.89 million shares will be set aside for eligible directors, employees and persons who have contributed to the success of Cosmos and its subsidiaries.

The group said in a statement that proceeds from the IPO will be utilised to finance the acquisition of a factory building measuring approximately 36,860 square feet located in Balakong, Seri Kembangan.

The acquisition, it said, will enable the group to consolidate the management, operations and production space in one location, in line with the strategies to continuously enhance productivity and improve effectiveness in its overall operations.

Proceeds raised from the listing exercise will also be utilised to finance the purchase of new machinery to, amongst others, meet the anticipated increase in demand from the group’s oil and gas customers.

Cosmos is an integrated water technology solutions provider principally involved in the distribution and instrumentation services of fluid control products and the manufacturing of fabricated metal products for industrial applications used in the water, wastewater and oil and gas industries.

Managing director Datuk Chong Toh Wee said the group saw great potential for business expansion, given that water management is crucial amid rapid urbanisation and economic development, climate change, and increasing industrial demand.

“We expect the demand for metal frames for shaker filters to grow as it is a crucial piece of equipment used in the oil and gas industry. 

“The signing of this underwriting agreement brings us one step closer to our proposed debut on the ACE Market of Bursa Malaysia, which in turn will enable us to enlarge our business capabilities,” he said in the same statement.

Cosmos was listed on the LEAP Market of Bursa Malaysia on  March 9, 2020 and had issued 19.24 million shares representing approximately 10 per cent of its enlarged issued share capital at 28 sen per share to investors. Subsequently, the group withdrew its listing and was delisted from the LEAP Market on Nov 10, 2021 to facilitate its listing on the ACE Market.

-- BERNAMA