Yap (second right) and Tan (second left) pose for a photo while holding up documents of the underwriting agreement between CEKD and M&A Securities. Also seen are M&A Securities Corporate Finance head Gary Ting (left) and CEKD deputy executive chairman Yap Tian Tion.
KUALA LUMPUR: CEKD Bhd (CEKD), a die-cutting solutions provider as well as manufacturer of die-cutting moulds and trader of related consumables, tools and accessories, has signed an underwriting agreement with M&A Securities Sdn Bhd (M&A Securities).
This underwriting agreement today is a precursor to the upcoming initial public offering (IPO) of the company on the ACE Market of Bursa Malaysia Securities Bhd (Bursa Securities) that will take place in September 2021.
CEKD managing director Yap Kai Ning said, “The signing of the underwriting agreement brings us closer towards our goal of taking CEKD public through an IPO.
“As one of the leading custom die-cutting solutions providers in Malaysia, we believe that this will be extremely beneficial for CEKD in strengthening and solidifying our position in the industry from an operational and financial standpoint.”
M&A Securities Corporate Finance managing director oDatuk Bill Tan said, “We are honoured to have been a part of CEKD’s journey towards listing on the ACE Market of Bursa Securities.
“We want to extend our appreciation for having been appointed as CEKD’s Adviser, Sponsor, Sole Underwriter and Placement Agent of the IPO. The company has come a long way since its inception, and we are proud to have been a part of this important milestone in its history. This IPO marks another impressive achievement for the company, and we wish them all success and the best.”
As reported in the prospectus exposure on the Securities Commission’s website, CEKD’s IPO entails a proposed public issue of 50.59 million shares where 9.73 million shares will be made available for application by the Malaysian public.
An additional 9.73 million will be allocated to eligible directors, employees, and contributors to the company; another 6.81 million shares will be reserved for private placement to selected investors and 24.32 million shares will be reserved for private placement to Bumiputera investors approved by the Ministry of International Trade and Industry (MITI).
Under the agreement, M&A Securities will underwrite 19.46 million of the total proposed issue of shares allocated to the Malaysian public or through pink forms. The balance of 31.13 million issue shares available for application by Bumiputera investors approved by MITI and selected investors will not be underwritten and will be placed out by the M&A Securities.
CEKD’s principal market is mainly from Malaysia which contributed 85.6 per cent of the overall revenue in the financial year ended August 31, 2020. CEKD’s customers are mainly from the paper printing and packaging, electrical and electronics, automotive, plastic packaging, textile and leather industries.