CUCKOO Malaysia eyes RM1.84 billion market capitalisation

CUCKOO Malaysia, a dominant player in the nation’s water purification and healthy home solutions market, has officially launched its Initial Public Offering (IPO) prospectus, marking a pivotal step in its growth journey since its establishment in 2014. The company, which operates under the umbrella of South Korean home appliance giant CUCKOO Electronics, is eyeing a listing on the Main Board of Bursa Malaysia on 30 April.

The application period for the IPO is now open and will close on Thursday, 10 April, with the balloting exercise scheduled for 28 April. CUCKOO Malaysia is expected to issue a total of 143.28 million new shares, representing 10% of its enlarged share capital upon listing, at an issue price of RM1.29 per share. This move is projected to raise gross proceeds of RM184.80 million, placing the company’s estimated market capitalisation at RM1.84 billion, based on the post-listing share capital of approximately 1.4328 billion shares.

Strategic allocation to fuel expansion

A significant portion of the IPO proceeds will be channelled towards CUCKOO Malaysia’s strategic expansion initiatives, both domestically and regionally. The company plans to allocate RM104.70 million, or 56.7% of the total funds raised, to enhance its product procurement capabilities and support the growth of its rental business, a model that has underpinned its success in the Malaysian market.

Furthermore, RM40 million, accounting for 21.6% of the proceeds, has been earmarked for the repayment of existing bank borrowings. This move is expected to strengthen CUCKOO Malaysia’s balance sheet, improve cash flow, and provide greater flexibility to pursue future investment opportunities.

In addition to domestic priorities, CUCKOO Malaysia is setting its sights on regional expansion, with RM10 million allocated for scaling up its operations in Singapore. The company also plans to invest RM10.60 million in capital expenditures to upgrade infrastructure and enhance operational efficiency. The IPO-related expenses are anticipated to amount to RM19.50 million, representing 10.6% of the total proceeds.

Diverse share allocation

CUCKOO Malaysia’s IPO structure is designed to attract a diverse investor base, balancing public participation with institutional strength. Of the total 143.28 million new shares, 28.656 million shares have been set aside for public subscription through balloting, providing retail investors an opportunity to be part of the company’s growth journey.

An additional 14.328 million shares will be offered to eligible persons, including directors and employees of CUCKOO Malaysia, acknowledging their role in driving the company’s success. Meanwhile, 100.296 million shares will be placed with institutional investors and selected qualified investors, a move aimed at ensuring stable, long-term shareholder support.

In conjunction with the new issuance, existing shareholders will be divesting approximately 222.084 million shares, contributing to market liquidity and potentially broadening the shareholder base post-listing.

Robust advisory support

CUCKOO Malaysia’s IPO is underpinned by the expertise of established financial institutions, reinforcing confidence among prospective investors. RHB Investment Bank takes the lead as the principal adviser, joint global coordinator, joint bookrunner, managing underwriter, and joint underwriter for the exercise.

Maybank Investment Bank joins as joint global coordinator, joint bookrunner, and joint underwriter, bringing additional depth and reach to the offering. The involvement of these prominent banks signals strong institutional support and enhances the credibility of CUCKOO Malaysia’s public market debut.

With its ambitious expansion plans, balanced financial strategy, and a clear roadmap for growth, CUCKOO Malaysia is poised to strengthen its position as a leader in the healthy home solutions sector. Investors and market watchers alike will be closely monitoring the company’s next chapter as it gears up for its anticipated Bursa Malaysia debut on 30 April.