KUALA LUMPUR (July 6): Leader Energy Holding Bhd is offering of up to one billion shares in an initial public offering (IPO) as it seeks listing on the Main Market of Bursa Malaysia, according to its prospectus exposure published on the Securities Commission Malaysia (SC) website on Wednesday (July 5). 

The one billion shares, which represent 28.2% of its enlarged issued share capital of 3.55 billion shares, comprise an institutional offering of up to 923.5 million shares and a retail offering of up to 76.5 million shares.

The institutional offering will entail the placing of 673.5 million shares to institutional and selected investors via public issue, and an offer for sale of up to 250 million shares via private placement.

Meanwhile, the retail offering will involve the public issuance of 71 million shares to the Malaysian public, and 5.5 million shares for application to eligible directors and employees for Leader Energy and its subsidiaries.

Leader Energy is principally an investment holding company. The group, together with its subsidiaries and jointly controlled entities, is an independent power producer that is primarily engaged in the development, ownership, operation and maintenance of power assets and projects. 

The group’s portfolio consists of utility-scale power assets and commercial and industrial solar projects. Its power assets (comprising renewable energy [RE] and non-RE) projects including those owned by its jointly controlled entities are located in Malaysia, Cambodia, Vietnam, Singapore, Indonesia and Thailand, as well as Taiwan. 

“We intend to grow our business by focusing on power generation and transmission assets and/or projects in Malaysia as well as other countries across Southeast Asia and Taiwan that record high growth in demand for electricity. RE generation assets and/or projects that we intend to expand into include solar, wind, hydro, transmission, as well as energy storage projects,” according to the group’s prospectus. 

On the financial front, Leader Energy’s earnings have steadily risen over the past three financial years. Its net profit stood at RM166.08 million in the financial year ended Dec 31, 2020 (FY2020), RM175.36 million in FY2021 and RM177.2 million in FY2022. 

Revenue climbed from RM545.58 million in FY2020 to RM679.34 million in FY2021 and RM910.61 million in FY2022. 

HNG Capital is a promoter and major shareholder of Leader Energy. It is also the substantial shareholder of Sarawak Cable Bhd (SCB), which in turns holds a 100% stake in SCB’s holding company Leader Cable Industry Bhd. 

Affin Hwang Investment Bank Bhd and RHB Investment Bank Bhd are the principal advisers for the IPO exercise.