KUALA LUMPUR (Sept 14): Cosmos Technology International Bhd, which is scheduled to be listed on Bursa Malaysia’s ACE Market on Oct 6 at 35 sen a share, said on Wednesday (Sept 14) that it plans to raise about RM22.44 million from its initial public offering (IPO), which involves a public issue of 64.13 million new shares.
According to Cosmos’ prospectus which was filed with Bursa on Wednesday, Cosmos plans to use the estimated RM22.44 million gross proceeds to finance, among others, the acquisition of a new building and purchase of new machinery.
Based on Cosmos’ issue price of 35 sen a share and the company’s enlarged number of outstanding shares at 256.5 million, the company will have a market capitalization of about RM89.78 million upon listing, the water technology solutions provider said.
Substantial shareholders of Cosmos include Datuk Chong Toh Wee and Singapore-listed MSM International Ltd, which will own 40.5% and 27% stakes in Cosmos respectively after the IPO, according to Cosmos.
Chong is also the managing director of Cosmos, the company said.
Cosmos said investors’ application for the company’s shares starts on Wednesday and that the application’s closing date is on Sept 22, 2022.
Mercury Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for Cosmos’ IPO in conjunction with Cosmos’ planned ACE Market
listing, according to the prospectus.
Prior to the current IPO, Cosmos was initially listed on Bursa as a LEAP Market entity on March 9, 2020 at 28 sen.
“Subsequently, our company was delisted from the LEAP Market on Nov 10, 2021, pursuant to the withdrawal of the listing from the LEAP Market, to facilitate the listing on the ACE Market,” said Cosmos, which had on Wednesday organized a press conference in conjunction with the prospectus launch for the company’s proposed ACE Market listing.
In a statement issued to reporters covering the press conference here, Chong said the ACE Market listing will enable Cosmos to enhance its corporate image among its customers, suppliers, employees and other stakeholders, as well as provide funding for the expansion of Cosmos’ business.
“With this IPO, we will be able to streamline and consolidate our operations and purchase new machinery to enable us to increase our manufacturing capacity and capability that can take us to even greater heights,” Chong said.