Cheeding Holdings Berhad

Date of Prospectus: 12 September 2025

Cheeding Holdings Berhad IPO: A Deep Dive into Malaysia’s Utilities Engineering Market Debut

IPO Snapshot: Key Terms, Offer Details, and Structure

Cheeding Holdings Berhad is set to list on the ACE Market of Bursa Malaysia, presenting investors with a significant opportunity in the utilities engineering sector. The IPO is structured as a combination of a public issue and an offer for sale.

• IPO Symbol: Not disclosed
• 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 Upon Listing: RM287,012,520
• Listing Date: 7 October 2025
• Offer Period: Applications open 10:00 a.m., 12 September 2025; close 5:00 p.m., 23 September 2025

Use of Proceeds: Growth Plans and Financial Strategy

Cheeding Holdings Berhad plans to raise RM51.48 million through the public issue, reflecting a balanced approach to growth and financial discipline:

• Repayment of bank borrowings: RM2.3 million (4.47%) – targeted deleveraging
• Capital expenditure (expansion): RM3.2 million (6.22%) – machinery, equipment, infrastructure
• Performance bond for future projects: RM16.15 million (31.37%) – enables project tendering and contract security
• Working capital: RM24.63 million (47.84%) – supports day-to-day operations and project delivery
• Estimated listing expenses: RM5.2 million (10.10%) – professional, regulatory, placement, and printing costs

The allocation signals a growth-driven story with prudent deleveraging, supporting future project pipeline and operational scalability [[38]], [[52]].

Dividend Policy and Commitments

Cheeding Holdings Berhad intends to recommend and distribute dividends of at least 25% of consolidated profit after tax (PAT) attributable to owners post-listing. However, this is a policy rather than a binding commitment, and actual payouts depend on profitability, cash flow, and future business requirements.

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

The company’s board will evaluate dividends based on cash, debt, retained earnings, operational needs, and capex plans [[39]].

Placement and Issuance: Public, Private, and Employee Allocations

The IPO structure promotes broad investor participation and compliance with public spread requirements:

• Public Balloting: 39,863,000 shares (5%) split evenly between Bumiputera and Non-Bumiputera investors
• Pink Form Allocation (Eligible Parties): 8,168,000 shares (1.02%) for directors, key employees, and contributors – up to 60 individuals
• Private Placement: 94,969,000 shares (11.91%) to selected investors and MITI-approved Bumiputera investors
• Offer for Sale: 65,000,000 shares (8.15%), entirely via private placement

No greenshoe or over-allotment option is employed for this offering [[48]].

Investor Participation and Book Quality

Anchor/Institutional Investors: Allocations to selected institutional and MITI-approved Bumiputera investors are made by irrevocable undertakings, ensuring strong institutional support for the placement tranches. All public and employee allocations are fully underwritten. No retail or institutional oversubscription metrics are disclosed, but the structure supports robust book quality.

There are no disclosed pre-listing disposals by early shareholders beyond the Offer for Sale component, which is entirely allocated to private placement investors [[45]], [[47]].

Given the multi-tranche structure, underwritten public allocation, and cornerstone investor participation, first-day performance is likely to be supported by stable institutional and retail demand [[46]], [[48]].

Deal Parties and Structure

• Principal Adviser, Sponsor, Underwriter, and Placement Agent: TA Securities Holdings Berhad
• No price stabilization or greenshoe: No mechanism is in place for post-IPO price support [[48]].

TA Securities is responsible for underwriting and placing all public and private tranches, supporting orderly market entry. The absence of a greenshoe mechanism means price stability will depend on the quality of the book and aftermarket demand [[57]].

Company Overview: Business Model, Revenue Streams, and Market Position

Cheeding Holdings Berhad operates in the utilities engineering solutions space, focusing on project-based delivery of power infrastructure, including transmission lines, substations, and related services for property developers and government-linked entities. Revenue is primarily generated from:

• Utilities engineering projects – contract-based, competitive bidding
• Major customer segments: Property developers, government agencies, and selected private sector clients
• Key geographies: Malaysia, with a focus on Kuala Lumpur and major industrial zones

The company leverages technical skills, project management, and regulatory licenses (CIDB, TNB, MOF) to secure contracts. Competitive strengths include track record, financial strength, and workforce capabilities [[36]].

Financial Health: Multi-Year Performance

Cheeding Holdings Berhad demonstrates rapid topline growth, resilient margins, and strong cash flow expansion over the last four periods [[39]].

Market Position and Competitive Advantages

Cheeding Holdings Berhad is positioned as an emerging leader in Malaysia’s ACE Market, focusing on quality project execution and regulatory compliance. Its ability to secure contracts from major property developers and government-linked entities illustrates strong market relevance and established relationships. The company’s licenses and certifications are key enablers for larger-scale project participation [[36]].

Management Team

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

The management team blends industry experience, technical expertise, and financial stewardship [[38]].

Industry Trends, IPO Timing, and Market Environment

Sector: Power infrastructure and utilities engineering, with demand driven by Malaysia’s ongoing property development, industrial expansion, and infrastructure upgrades.

Order Book: RM202.67 million as at the latest practicable date, supporting medium-term revenue visibility [[55]].

IPO Timing: The listing comes amid active infrastructure spending and favorable government policies for Bumiputera and industrial development (as reflected in MITI allocations).

Seasonality: Not material; project revenues are based on contract cycles rather than seasonal fluctuations.

Recent Developments: Acquisition of Pembinaan Bukit Cheeding and BC Services to consolidate operations and eliminate related party transactions, enhancing corporate governance [[100]].

Market conditions, as described, are supportive for the sector and the company’s listing [[20]].

Risk Factors

Key risks to consider:

• Project-based revenue: No guaranteed future contracts; performance is subject to success in competitive bidding and customer retention
• Customer concentration: Major customers contributed up to 14.08% of revenue in FYE 2022
• Loss of key management: Potential disruption if Managing Director, Executive Director, or senior management depart without succession planning
• Commodity/material price risk: Exposure to pylon tower and cable price fluctuations, which are major cost components (up to 86.11% of cost of sales in FYE 2025)
• Legal, regulatory, and jurisdictional risks: IPO is only offered in Malaysia; applicants must ensure compliance with local laws
• No price stabilization: Absence of greenshoe may expose IPO to post-listing volatility
• Related party transactions: Historical, now reduced post-acquisition of BC Services [[139]], [[36]], [[37]]

Growth Strategy and Expansion Plans

Cheeding Holdings Berhad is focused on:

• Strengthening internal capabilities – project management, technical skills, and workforce development
• Pursuing larger-scale projects leveraging track record and regulatory licenses
• Expanding machinery and equipment base via targeted capex
• Maintaining significant performance bond capacity to support new contract bidding
• Enhancing financial flexibility for future growth and working capital needs

These initiatives are designed to drive sustainable growth, improve profitability, and support continued market share gains [[36]].

Ownership and Lock-ups

Moratorium: All specified shareholder shares are subject to a 6-month full lock-up, followed by a 6-month partial lock-up (minimum 45% of post-listing shares), then gradual release at 1/3 per annum [[30]].

Valuation and Peer Comparison

Peer company data is not disclosed in the current document.

Research and Analyst Opinions

Independent Market Research: Providence Strategic Partners Sdn Bhd is the appointed IMR, contributing analysis to the prospectus. No explicit price targets or external analyst opinions are included [[28]].

Listing Outlook: Subscription Value and First-Day Performance

Cheeding Holdings Berhad’s IPO is built on strong revenue and earnings growth, robust order book, prudent capital allocation, and broad institutional and retail participation. The underwritten public and employee tranches, institutional cornerstone undertakings, and clear dividend policy provide a foundation for solid aftermarket performance. With an indicative P/E of 10.91x and visible growth prospects, the IPO appears attractive for investors seeking exposure to Malaysia’s utilities engineering sector.

Based strictly on prospectus figures, the likely first-day trading range is expected to be at or above the RM0.36 offer price, supported by book quality and sector momentum. Market conditions and sector trends suggest a favorable environment for the listing.

Prospectus Access

The official prospectus is available at: www.bursamalaysia.com

How to Apply

• Application channels: TA Securities, Malaysian Issuing House Sdn Bhd, participating banks and brokers, and via Bursa Malaysia member organizations
• Application window: 10.00 a.m. 12 September 2025 to 5.00 p.m. 23 September 2025
• Application forms: Only available in paper format; not offered electronically