KUALA LUMPUR: Cnergenz Bhd has launched the prospectus for its initial public offering (IPO) on the ACE Market of Bursa Malaysia.

       In a statement, the electronics manufacturing solutions provider said the IPO has been open for applications since 10am on April 29, 2022, and will close on May 11, 2022.

       "We are elated to have reached a new milestone with the Prospectus launch today, bringing us a step closer towards becoming a listed entity on the ACE Market of Bursa Securities.

       "Having been in the E&S space since 2004, our listing is in line with our growth plans and strategies to scale up our operations, expand our integrated solutions and smart factory solutions offerings and develop our own proprietary range of solutions,” said Cnergenz CEO Lye Yhin Choy.

       The IPO involves the public issue of 100 million issue shares and an offer for sale of 50 million offer shares by way of private placement at the IPO price of 58 sen per share.

       From the public issue, 25 million issue shares will be made available for application to the Malaysian public, 10 million shares will be allocated for application by eligible directors and employees as well as persons who have contributed to the success of Cnergenz Group, 52.75 million shares will be reserved for private placement to identified investors and 12.25 million shares will be reserved for private placement to identified Bumiputera investors.

       The issue price has been set at 58 sen per share, which will give the company a market capitalisation of RM288.84mil.

       The IPO is expected to raise gross proceeds of RM58mil and will go mainly towards the group’s expansion of its operational facility, as well as research and development expenditure and working capital.

       Cnergenz is targeting a listing date of May 24, 2022, on the ACE Market.

       UOB Kay Hian is the principal adviser, sponsor, underwriter and placement agent for the IPO.