KUALA LUMPUR (Oct 7): Generator rental services provider Express Powerr Solutions (M) Bhd has filed its prospectus exposure for its initial public offering (IPO) with Bursa Malaysia.

The IPO involved up to 211.9 million shares, comprising an offer for sale of up to 51.15 million existing shares, as well as a public issue of up to 160.75 million new shares. 

Of the new shares, 36.54 million shares will be allocated to the Malaysian public, and 40.19 million shares to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti).

Another 25.57 million of those new shares will be allocated to eligible persons (via pink form allocations), while 58.45 million shares will be placed to select investors through private placement.

The offer for sale, meanwhile, will be done through private placement to Bumiputera investors approved by Miti.

Express Powerr, which is seeking to list on the ACE Market of Bursa Malaysia, owns 49 large-sized power generators used during planned maintenance and emergencies, and for standby purposes. It also began providing solar photovoltaic solutions in April.

The group, which begun providing generator rental services since 2005, has footprint in parts of Peninsular Malaysia and Sabah, with plans to expand its footprint into Peninsular Malaysia’s northen states. It also plans to purchase another 16 units of the large-sized generators, as well as to expand its sales and technical teams.

It reported a profit after tax (PAT) of RM9.89 million for the financial year ended Dec 31, 2023 (FY2023), up 31.93% from RM7.49 million in FY2022, as revenue increased by 25.51% to RM39.42 million, from RM31.41 million.  

In FY2021, it logged a PAT of RM5.66 million, on the back of a revenue of RM19.34 million, resulting in a profit margin of 29.25% — higher compared to 23.86% in FY2022 and 25.08% in FY2023.  

Proceeds from the IPO have been earmarked for the purchasing of large generators, as well as medium and high-voltage equipment, and to fund its working capital.

Meanwhile, any money raised from the offer for sale will accrue entirely to its managing director Lim Cheng Ten, which will see him retain a 71% stake in the company, post-IPO.  

Mercury Securities Sdn Bhd is the principal adviser, underwriter and placement agent for the IPO.