CNERGENZ TO RAISE RM58 MLN FROM IPO AND LIST ON ACE MARKET ON MAY 24

KUALA LUMPUR, April 29 (Bernama) -- Electronics manufacturing solutions provider CNERGENZ Bhd,  en route to list on Bursa Malaysia’s ACE Market on May 24, plans to raise RM58 million from its initial public offering (IPO).

At an issue price of 58 sen per share and an enlarged share capital of 498 million shares, the group will have a market capitalisation of RM288.84 million on listing.

Chief executive officer Lye Yhin Choy said at a press conference after launching CNERGENZ's prospectus today that the listing proceeds will be used mainly to expand its Penang-based operational facility, research and development (R&D) and as working capital. 

Expanding the operational facilities, including land purchase, construction and capital expenditure will take up RM37.8 million; R&D RM6 million; working capital RM10 million and RM4.2 million for its listing expenses.

The group plans to scale up operations by upsizing the new facility with a built-up area of up to 130,000 square feet to include workshop, assembly area, fully equipped training and application centre, and R&D centre.

“We are currently discussing with Penang Development Corporation (PDC) after identifying a plot of land in Penang Science Park North, and we are still in the process of getting the required approvals. 

"We will plan for the building construction once that is obtained; we are targeting to complete that in the second half of 2023,” he said.

Lye noted that the manufacturing sector is seeing steady growth as the global economy continues to recover and the group foresees demand for electronics manufacturing solutions will continue to be high.

“We intend to seize the opportunities that arise, especially from Thailand and Vietnam, where we are well positioned to benefit from the growing electronics and semiconductor exports,” he said. 

-- BERNAMA