KUALA LUMPUR, Nov 25 (Bernama) -- Mechanical and electrical (M&E) engineering service provider CBH Engineering Holding Bhd has signed an underwriting agreement with Mercury Securities Sdn Bhd for its proposed initial public offering (IPO) on the ACE Market of Bursa Malaysia.
In a statement today, the company said the IPO involves 486.1 million ordinary shares, comprising a public issue of 298.0 million shares and an offer for sale of 188.1 million shares.
These offerings account for 15.8 per cent and 10.0 per cent, respectively, of CBH’s enlarged issued share capital of 1.88 billion shares upon listing.
Of the IPO shares, CBH said 94.0 million issue shares will be made available to the Malaysian public via balloting, and 28.4 million shares will be reserved for eligible directors, employees, and contributors to the group's success under a pink form allocation.
"Additionally, 128.5 million issue shares will be offered via private placement to selected investors.
"The remaining 47.0 million shares and 188.1 million offer shares will be allocated through private placement to selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry of Malaysia (MITI), it noted.
Mercury Securities shall underwrite 122.5 million issue shares, covering the allocations for the Malaysian public and pink form recipients.
CBH, through its subsidiaries, provides electrical engineering services for electricity distribution systems and mechanical engineering works for building systems, including air conditioning, fire protection, plumbing, and renewable energy systems.
Managing director Cheah Boon Hwa said the group's 33 years of experience in the M&E engineering industry have enabled it to successfully deliver projects of varying scale and complexity, establishing itself as a cost-effective and reliable contractor.
Among the group’s notable completed projects are the design and build of substations for data centres at Sedenak Tech Park in Johor and a substation and distribution project at Malaysia-China Kuantan Industrial Park in Pahang.
"Data centres are vital enablers of digital infrastructure. Malaysia is emerging as a hub for these facilities, driven by rising data usage, internet services, and cloud adoption powered by 5G and cloud computing.
"Moreover, local and global technology giants such as Microsoft, Google, Amazon, and Telekom Malaysia are making significant investments to develop hyper-scale data centres and cloud services in the country," he said.
Cheah also noted that foreign and domestic investments are driving the development of commercial and industrial properties, alongside supporting infrastructure, creating more opportunities for M&E engineering service providers like CBH.
CBH is slated for listing in January 2025, with Mercury Securities serving as the principal adviser, sponsor, sole underwriter, and placement agent for the IPO exercise.
-- BERNAMA
