CE Technology to raise RM12.48 mln to fund expansion plans

Malaysia’s second largest cleanroom gloves exporter, CE Technology Bhd aims to raise RM12.48 million from the listing on the Leading Entrepreneur Accelerator Platform (LEAP) Market of Bursa Securities, which will be utilised mainly for its expansion plans.

In a statement yesterday, CE Technology said it had received approval from Bursa Malaysia Securities Bhd for the LEAP Market listing.

“The listing entails a placement of 52 million shares representing 15.02 per cent of the company’s enlarged share capital to selected sophisticated investors at an indicative price of 24 sen per share, raising a total of RM12.48 million.

“Based on the above, upon its debut on the LEAP Market, CE Technology is expected to have a market capitalisation of RM83.1 million,” it said.

Managing director and chief executive officer Teoh Swee Sun said the growing global demand for cleanroom gloves is driven by the expansion of high technology electronics industries such as wafer fabrication and life sciences industries such as biotechnology.

“According to an independent market research report by Protégé Associates Sdn Bhd, the cleanroom gloves market in Malaysia is projected to grow at a strong pace with Compound Annual Growth Rate (CAGR) of 9.7 per cent from 2018 to 2023.

“As we strive to stay ahead of the competitive cleanroom glove industry, we are constantly innovating and developing new solutions and products for our customers,” he said.

He said the company is allocating approximately 69 per cent or RM8.5 million of the listing proceeds to expand its processing capacity and enhance the research and development (R&D) capabilities while the remaining will be used for working capital (RM2.2 million) and listing expenses (RM1.7 million).

“We are setting up new cleanroom post-processing facilities which will more than double our monthly processing capacity from 20 million pieces to approximately 43 million pieces of gloves a month,” he added.

Furthermore, he said the company aimed to leverage on its R&D capabilities to develop and customise new cleanroom gloves, such as the extra-long and good electrostatic discharge (ESD) control cleanroom gloves used in both the high-end electronics industries as well as the life sciences industries. — Bernama