PETALING JAYA: Mechanical and electrical (M&E) engineering service provider CBH Engineering Holding Bhd (CEH) has signed an underwriting agreement with Mercury Securities Sdn Bhd for its initial public offering (IPO) on the ACE Market of Bursa Malaysia.
Mercury Securities will underwrite 122.5 million shares made available to the Malaysian public and pink form allocations.
CEH managing director Ir Cheah Boon Hwa said that with over 33 years of experience in the M&E engineering industry, the company has delivered projects of varying scales and complexities, establishing itself as a cost-effective and reliable contractor.
“This proven track record positions us favourably for future opportunities, as reflected in the growing number of projects awarded to us. The signing of today’s underwriting agreement marks a crucial step in our journey, unlocking greater capabilities to undertake M&E engineering projects,“ he said in a statement.
CEH’s IPO comprises 486.1 million ordinary shares, including 298 million public issue shares and 188.1 million offer-for-sale shares. These represent 15.8% and 10%, respectively, of CBH’s enlarged share capital of 1,880.9 million shares post-listing.
Of the IPO shares, 94 million will be offered to the Malaysian public via balloting, while 28.4 million will be allocated to eligible directors, employees, and contributors (pink form allocations). Some 128.5 million shares will be privately placed with selected investors. The remaining 47 million shares and 188.1 million offer shares will be privately placed with Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
CEH is scheduled to be listed on the ACE Market of Bursa Malaysia in January 2025, with Mercury Securities as the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.
Cheah said the outlook for the industry is positive.
He said data centres are vital enablers of digital infrastructure, and 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.”
“Additionally, increasing foreign and domestic investments are boosting the development of commercial and industrial properties along with supporting infrastructure, creating more opportunities for M&E engineering service providers like us,“ Cheah said.
CEH, through its subsidiaries, provides electrical engineering services for electricity supply distribution systems, which cover the design, supply, installation, testing, commissioning, and maintenance of high-voltage, medium-voltage, low-voltage, and extra-low-voltage electrical systems. The group also offers mechanical engineering works for building systems, such as air conditioning and mechanical ventilation, fire protection, plumbing and sanitary, and renewable energy systems.
CEH has built a diverse portfolio of engineering projects for commercial properties such as data centres, shopping complexes, hotels, and office towers, industrial properties such as manufacturing plants and warehouses, and high-rise residential properties.
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.
As of May 31 2024, CEH has 13 subsisting contracts with a total unbilled order book of RM207 million, expected to be recognised progressively up to Dec 31, 2025. Five of these contracts involve data centres, reflecting CBH’s expanding expertise in this rapidly growing sector. Additionally, CBH has submitted six tenders totalling RM496.1 million.
