Cheeding Holdings Berhad

Date of Prospectus: 12 September 2025

Cheeding Holdings Berhad IPO: A Deep Dive Into Malaysia’s Utilities Engineering Market Leader’s ACE Market Debut

IPO Snapshot: Key Facts and Offer Details

Cheeding Holdings Berhad is launching its Initial Public Offering (IPO) on the ACE Market of Bursa Malaysia Securities, offering investors exposure to the fast-growing utilities engineering sector in Malaysia. The IPO is structured to attract a diverse set of investors, including public, private, and Bumiputera tranches, with a robust offering and clear use of proceeds supporting growth and operational expansion.

• IPO Symbol: Not disclosed in the prospectus
• Offer Price: RM0.36 per share
• Total Offer Size: 208,000,000 shares (143,000,000 new shares via Public Issue; 65,000,000 existing shares via Offer for Sale)
• Post-IPO Outstanding Shares: 797,257,000 shares
• Expected Market Capitalisation at Listing: RM287,012,520
• Application Window: Opens 10:00 a.m., 12 September 2025; Closes 5:00 p.m., 23 September 2025; Listing Date: 7 October 2025

Use of Proceeds: Capitalizing on Expansion and Operational Resilience

Cheeding is clearly focused on growth and operational strengthening with its IPO proceeds allocation. The breakdown is as follows:

This allocation signals a strong focus on business expansion, operational capacity enhancement, and prudent financial management. The majority of funds (over 79%) will support working capital, performance bonds for new projects, and capex—underscoring Cheeding’s readiness for growth.

Dividend Policy: Shareholder Returns and Payout Targets

Cheeding Holdings Berhad has committed to a dividend payout policy of at least 25% of consolidated profit after tax (PAT) attributable to owners, post-listing. This is a clear signal to investors of the company’s intent to share profits, subject to operating performance and available cash. The Board retains discretion based on factors such as cash flow, indebtedness, and future capex needs.

Recent subsidiary dividends paid:

• FYE 2022: RM4.5 million
• FYE 2024: RM5.0 million
• FYE 2025: RM18.5 million

Placement, Issuance, and Allocation Structure

The IPO is carefully structured to balance public, employee, and institutional participation.

• Public Balloting: 39,863,000 shares (5%) split equally between Bumiputera and non-Bumiputera investors
• Eligible Directors, Employees, Contributors: 8,168,000 shares (1.02%) via Pink Form allocation
• Private Placement to Selected Investors: 27,202,000 shares (3.41%)
• Private Placement to Bumiputera Investors (MITI-approved): 67,767,000 shares (8.5%)
• Offer for Sale: 65,000,000 existing shares split between selected investors and MITI-approved Bumiputera investors

Deal Parties: Experienced Advisors and Strong Structure

The IPO is led by TA Securities Holdings Berhad as Principal Adviser, Sponsor, Underwriter, and Placement Agent.

• Principal Adviser, Sponsor, Underwriter, Placement Agent: TA Securities Holdings Berhad
• Independent Market Researcher: Providence Strategic Partners Sdn Bhd

Stabilization/Over-allotment: No price stabilization mechanism or greenshoe option will be employed for the IPO.

Underwriting: 48,031,000 shares underwritten by TA Securities Holdings Berhad, with a commission rate of 2.5% on value.

The involvement of reputable deal parties and underwriters, coupled with a fully underwritten public and employee allocation, suggests a well-supported listing process.

Company Overview: Utilities Engineering Leader with Strong Track Record

Cheeding Holdings Berhad is a leading provider of utilities engineering solutions, specializing in power infrastructure projects in Malaysia. The company has demonstrated rapid growth, robust profitability, and a scalable business model centered on project-based revenues.

• Business Model: Project-based utilities engineering solutions, particularly for power infrastructure
• Revenue Streams: Turnkey project contracts, engineering services, procurement, construction, commissioning
• Key Customers: Major Malaysian property developers (e.g., Customer A contributed 14.08% of revenue in FYE 2022)
• Geographic Focus: Malaysia

Industry Definition: Power infrastructure utilities engineering sector, with Cheeding positioning itself for large-scale projects and leveraging key certifications (CIDB, TNB, MOF).

Financial Health: Robust Growth and Profitability

Cheeding shows strong multi-year revenue and earnings growth, with healthy margins and cash flow generation.

Cheeding’s financial profile reveals consistent revenue and profit growth, robust margins, and a healthy cash flow generation, positioning it as an attractive IPO candidate in its sector.

Market Position: Competitive Strengths and Industry Credentials

Cheeding leverages a strong track record, key certifications, and technical expertise to compete for larger scale projects and maintain a leading position in Malaysia’s utilities engineering space.

• Competitive Advantages: Project management, technical depth, quality assurance, certifications (CIDB, TNB, MOF)
• Order Book: RM202.67 million as at LPD, indicating substantial future revenue visibility

Management Team: Experienced Leadership

Cheeding is led by a seasoned executive team and independent directors.

• Saw Wai Chuan: Independent Non-Executive Chairperson
• Ng Kian Chai: Managing Director
• Ng Chai Hsia: Executive Director
• Wendy Kam: Independent Non-Executive Director
• Chang Poh Sheng: Independent Non-Executive Director
• Poh Zuan Yin: Independent Non-Executive Director
• Key Senior Management: Ng Lam Shein (COO), Ng Lam Tiong (Project Director), Yap Hoong Yun (CFO)

Sector Trends, Macro Environment, and IPO Timing

Cheeding operates in a sector benefiting from Malaysia’s ongoing infrastructure development, with project-based demand driven by government and private investment in utilities.

• Sector Growth: Power infrastructure and utilities engineering remain a priority for national development
• Order Book: RM202.67 million as at LPD, supporting future growth
• IPO Timing: Application opens 12 September 2025, closes 23 September 2025; Listing slated for 7 October 2025

Economic and market conditions described in the prospectus highlight a supportive environment for infrastructure-led growth and capital markets activity.

Key Risk Factors: Project-Based Revenue and Managerial Dependence

Investors should consider several key risks:

• Project-Based Revenue: Financial performance depends on securing new projects; competitive bidding can pressure margins
• Key Person Risk: Heavy reliance on Managing Director, Executive Director, and key senior management; loss of leadership could impact performance
• Supplier and Material Price Risk: Exposure to price fluctuations in pylon towers and cables, major cost components
• Order Book Visibility: Significant declines in the order book could impact sustainability and future growth

Growth Strategy: Expansion, Capability Building, and Market Positioning

Cheeding plans to strengthen internal capabilities, secure larger projects, and leverage certifications to grow its business and profitability.

• Capital Expenditure: RM3.2 million allocated for expansion over 24 months
• Performance Bond Allocation: RM16.15 million to support future project bids
• Working Capital: RM24.63 million for operational scalability
• Strategic Objective: Leverage track record and certifications to win larger, higher-margin projects

Ownership Structure and Lock-ups

Pre-IPO and Post-IPO Shareholdings:

• Ng Kian Chai (Promoter/MD): 68.08% direct post-IPO, 6.17% indirect
• Tan Sook Hoi (Substantial Shareholder): 5.84% direct post-IPO, 68.08% indirect
• Directors and Key Senior Management: Small allocations via Pink Form shares

Moratorium: 6 months for all specified shareholders, followed by a further 6-month lock on 45% of shares, then a staggered release of up to one-third per annum thereafter.

Valuation Analysis

IPO Price: RM0.36 per share

• Pro Forma Net Assets per Share (post-IPO): RM0.12
• P/E Multiple (FYE 2025): 10.91x (based on RM26.35 million PAT and 797,257,000 shares)

Listing Outlook: Strong Fundamentals and Institutional Support

Cheeding Holdings Berhad presents a robust investment opportunity with its proven financial growth, sector leadership, and clear use of proceeds aimed at expansion and operational strength.

Based strictly on the figures and structure disclosed, the IPO appears worth subscribing for investors seeking exposure to Malaysia’s utilities engineering sector. With a P/E of 10.91x and a healthy order book, first-day performance is likely to be supported by institutional allocations, a growth-driven story, and a well-managed book. The absence of a greenshoe means price volatility could be higher, but the strong fundamentals suggest the shares may trade at or above the offer price, especially if order book momentum continues.

Estimated First-Day Range: RM0.36 to RM0.45 per share, barring market-wide volatility.

Prospectus Access

Website to obtain the prospectus: www.bursamalaysia.com

How to Apply

Applications can be made via participating brokers, financial institutions, and the Malaysian Issuing House Sdn Bhd. The application period is open from 10:00 a.m., 12 September 2025, until 5:00 p.m., 23 September 2025. Applicants must use paper application forms; electronic submissions are not available.