KUALA LUMPUR (Dec 5): The Securities Commission Malaysia (SC) has approved ACE Market-listed Cnergenz Bhd’s proposed transfer to the Main Market.

In a bourse filing on Tuesday, the electronics manufacturing solutions provider said the SC approved the proposed transfer to the Main Market under Section 214(1) ― grant of approval ― of the Capital Markets and Services Act 2007 and under the Bumiputera equity requirement for public-listed companies.

In a previous bourse filing, the company said that it is deemed to have met the requirements for the transfer — namely, profit, financial position and public shareholding spread requirements.

Based on its aggregate adjusted profit after tax (PAT) of RM51.06 million for the three past audited financial years ended Dec 31 (FY2020, FY2021 and FY2022), Cnergenz said it has met the profit requirements for the transfer ― which requires an aggregate audited PAT of at least RM20 million for three- to five financial years, and a PAT of RM6 million for the most recent financial year.

Based on end-December 2022 figures of net assets attributable to owners of the company of RM148.44 million, current assets and liabilities of RM179.94 million and RM52.56 million respectively, and cash of RM104.3 million, the company said it has met healthy financial position requirements ― which requires sufficient level of working capital for at least 12 months, positive cash flow from operating activities, and no accumulated losses.

Touching on public shareholding spread requirements of at least 25%, the company said this has also been met, with approximately 29.84% of the company’s issued share capital being held by public shareholders as at end-October.

Cnergenz’s transfer to the Main Market is expected to be completed by the first quarter of 2024.

The company listed on the ACE Market back in May 2022, at an initial public offering (IPO) price of 58 sen.

On Tuesday, shares in Cnergenz closed 2.5 sen or 4.35% higher at 60 sen ― valuing the company at RM308.54 million.

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