We are going to have another IPO in September probably, over a month after the CTOS Digital Berhad launched Malaysia’s Biggest IPO. This upcoming IPO is under CEKD Berhad and it is expected to be release in September 2021.Anyways, let’s dive right into it!
Introduction of CEKD
CEKD Group is a die-cutting solutions provider, and is involved in the manufacturing of die-cutting moulds and the trading of related consumables, tools and accessories, mainly to the paper printing and packaging industry, E&E industry, and other industries such as automotive,plastic packaging, textile and leather industries.
Currently CEKD has over 30 years of experience in die-cutting history since 1989 with with 3 wholly owned subsidiaries, namely Sharp Die Cutting Mould (Sharp DCM), Hotstar (M) and Focuswin Die Cutting Mould (Focuswin). The following diagram shows CEKD's group structure with the function of each subsidiary:
The following content about CEKD Berhad IPO is based on the information disclosed by the Malaysian Ministry of International Trade and Industry (MITI). My previous article has a detailed record of how to view this information through MITI. For those who are interested, you can refer this post for more information (in mandarin).
- IPO Price Per Share ：RM 0.48 (Change from RM0.36 in MITI Term Sheet)
- IPO Application (Begin) ：6th September 2021
- IPO Application (End) ：17th September 2021
- Balloting of application ：21st September 2021
- Listing Date(Tentative) ：29th September 2021
- IPO Listing Market ：Ace Market
CEKD’s Diluted Earnings Per Share (EPS) recorded in the past three financial years ended from 2018 to 2020 were 3.50 sen, 2.78 sen and 3.10 sen, respectively. So based on the IPO price, CEKD’s P/E Ratio is 15.48 11.61 times which is still reasonable from my perspective as most Ace Market IPO has a P/E range between 10 to 20.
CEKD Berhad has an Enlarged share capital of 194.573 million shares after its listing in Ace Market. It includes the issuance of 50.59 million new shares (26% of enlarged share capital). There is no offer for sale to any selected investors through private placement.
Public issue of 50,590,000 new ordinary shares in CEKD is in the following manner:
- 9,729,000 New shares available for application by the Malaysian public;
- 9,729,000 New shares available for application by our eligible directors,employees and persons who have contributed to the success of our group;
- 6,811,000 New shares by way of private placement to selected investors; and
- 24,321,000 New shares by way of private placement to Bumiputera
The funds raised by CEKD through IPO will be used for the following purposes (% is not mentioned here):
- Acquisition of factory for Hotstar (its subsidiary)
- Capital expenditure - Equipment & Software/Server Upgrade
- Repayment of bank borrowings
- Marketing Activities
- General Working Capital
- Estimated Listing Expenses
CEKD Berhad doesn't have any formal dividend policy as disclosed in the initial version of IPO prospectus.
Lastly, the shareholdings structure of CEKD Berhad:
Other IPO Posts (List)
Malaysia IPO Tutorial List (English)
Malaysia IPO Tutorial List (Chinese)
Malaysia IPO Tutorial Part 1 - How to Apply or Buy IPO?
Malaysia IPO Tutorial Part 2 - Where to check for Balloting Results Announcement?
Malaysia IPO Tutorial Part 3 - Am I a lucky guy to get an IPO?
Malaysia IPO Tutorial Part 5 - My Efficient IPO Calculator
Disclaimer: This article is only used for sharing and personal recording purposes. This site will not be responsible for any profits or losses made by anyone for any investment /speculative action.
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