CPE Technology Bhd, a leading provider of engineering support services in Malaysia, is set to raise RM179.58 million from an initial public offering (IPO) on December 7, 2023. The main objective of the IPO is to support the company’s ambitious expansion plans.

Lee Chen Yeong, CEO of CPE Technology, stated that the majority of the capital raised will be used to construct new plants, purchase machinery and equipment, and acquire raw materials to optimize production. In addition to these uses, part of the funds will be allocated to repay bank borrowings, provide working capital, cover capital expenditure, and pay for the expenses associated with the listing process.

According to the prospectus, Malaysia’s total engineering support industry (ESI) was worth RM9.98 billion in 2023, representing a growth of 8.2% from RM9.37 billion in 2022. CPE Technology held a 1.55% share of the 2022 market and generated revenue of RM145.35 million during that year. The company anticipates that the ESI will experience further growth in the coming years and reach RM13.88 billion by 2027 despite headwinds in the semiconductor industry.