KUALA LUMPUR, 25 September 2025 — Utilities engineering firm Cheeding Holdings Bhd saw overwhelming investor demand, with its initial public offering (IPO) on the ACE Market oversubscribed by 40.87 times, the company confirmed today.
The listing, priced at RM0.36 per share, drew participation across institutional, retail, and Bumiputera tranches. Cheeding aims to raise about RM51.5 million via the issuance of 143 million new shares, while an additional 65 million existing shares are offered via an offer for sale.
Cheeding is positioned among contractors qualified to undertake high-voltage works in Malaysia — a niche that aligns it closely with upcoming national grid expansion programs and the planned ASEAN Power Grid. Several brokers have valued Cheeding at as much as 73 sen, implying upside of over 100% from the IPO price.
Why the Oversubscription Matters
Such a high oversubscription ratio signals strong investor confidence in Cheeding’s business model and sector outlook. In a competitive IPO environment, demand of this magnitude suggests that markets believe utility infrastructure, especially in power engineering and grid works, remains a high-conviction play.
More concretely, the oversubscription provides Cheeding with flexibility in allotment decisions and may help it build early momentum in the secondary market. It also aids investor sentiment—strong launch demand often generates further interest post-listing.
Strategic Outlook & Risks
Cheeding holds a competitive advantage via its license credentials and track record in transmission towers, overhead infrastructure, and maintenance works. As Malaysia accelerates energy transition investment and grid modernization, the firm has a chance to carve out a meaningful market share.
However, execution risks remain. Delivering performance bonds, project financing, supply chain resilience, and managing order book margins will test Cheeding’s operational discipline. Furthermore, valuations at such growth stages tend to reflect forward expectations — if project awards or contract renewals do not materialise, price corrections may follow.
