KUALA LUMPUR (May 14): Swift Energy Technology Bhd, which sells industrial automation and power systems, filed for an initial public offering (IPO) on ACE Market to raise funds for the construction of new facilities and expansion abroad.

The proposed IPO involves a public issue of 250.2 million new shares and an offer for sale of 50.04 million existing shares at prices to be determined later, according to the draft prospectus submitted to Bursa Malaysia. All in all, the listing offers investors up to a 25% stake in the company.

“Our group plans to install a mezzanine level within our existing fabrication facility and construct a new 3-storey fabrication facility in the area within the compound of our existing head office and fabrication facility,” Swift Energy said.

The company has also earmarked part of the proceeds to finance the purchase of equipment and software by 2027 as well as set up a research-and-development centre. Further, Swift Energy also plans to expand in Indonesia by setting up a wholly-owned subsidiary with an office in Jakarta, it said.

The rest of the proceeds from the IPO will be used to repay bank borrowings, as working capital, and to defray listing expenses.

Swift Energy mainly focuses on process control, photovoltaic, power distribution and other systems mainly servicing customers in oil and gas, as well as grain products, edible oils and food manufacturing industries.

The company, which operates in Malaysia, Thailand, Singapore and China, made a net profit of RM11.95 million for the year ended Sept 30, 2023, on the back of RM92.43 million in revenue.

The public issue involves 50.04 million new shares for the Malaysian public, 125.1 million shares for bumiputera investors and another 25.02 million shares for select investors through private placement.

The offer-for-sale of existing shares, meanwhile, will be done through private placement to select investors and proceeds will go entirely to selling shareholders including Blueprint Capital Sdn Bhd, mainly controlled by Swift Energy chief executive Tan Bin Chee and corporate affairs director Suzana Abu Bakar.

M&A Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.