Cnergenz IPO shares oversubscribed by 40.32 times

KUCHING: CNERGENZ Bhd (Cnergenz) recently announced that the share allocation to the Malaysian public from its initial public offering (IPO) has been oversubscribed by 40.32 times.

Cnergenz’s IPO comprises a public issue of 100 million new ordinary shares which were made available for application.

From that amount, 25 million issue share will be made available for application by the Malaysian public, 10 million issue shares reserved for application by the eligible directors and employees as well as persons who have contributed to the success of the Cnergenz group (eligible persons), 52.75 million issue shares by way of private placement to identified institutional and/or selected investors, 12.25 million issue shares by way of private placement to identified Bumiputera investors approved by the Ministry of International Trade and Industry, Malaysia (MITI) and an offer for sale of 50 million offer shares by way of private placement to identified Bumiputera investors approved by the MITI.

A total of 16,186 applications for 1,033,093,200 issue shares were received from the Malaysian public, representing an oversubscription rate of 40.32 times.

A total of 9,089 applications for 376,239,100 issue shares were received under the Bumiputera category, representing an oversubscription rate of 29.1 times, whilst a total of 7,097 applications for 656,854,100 issue shares were received under the other Malaysian public category, representing an oversubscription rate of 51.55 times.

Meanwhile, the total of 10 million issue shares available for application by the eligible persons were fully subscribed.

“We would like to thank investors for putting their trust in us,” Cnergenz chief executive officer (CEO) Lye Yhin Choy said.

“We are extremely pleased with the reception to our IPO as it shows deep investor confidence in our business, our solutions capabilities, and the overall optimism and positive outlook of the electronics and semiconductor industry.” UOB Kay Hian Securities (M) Sdn Bhd (UOB Kay Hian) CEO David Lim said that the response to Cnergenz’s IPO is a reflection of investors’ appetite for businesses with fundamentally strong prospects and solid growth plans.

“The company is well-positioned to leverage on the continued growth and investment in the electronics and semiconductor industries in Malaysia, Vietnam and Thailand,” Lim added.

UOB Kay Hian, being the principal adviser, sponsor, underwriter and placement agent in conjunction with the IPO, has confirmed that the 52.75 million issue shares by way of private placement to identified institutional and/or selected investors have been fully placed out.

The company is expected to list on the ACE Market of Bursa Securities on May 24, 2022.