KUALA LUMPUR (Nov 18): Industrial automation and power systems provider Swift Energy Technology Bhd has entered into an underwriting agreement with M&A Securities Sdn Bhd for its initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.

The IPO entails a public issue of 250.2 million new shares and an offer for sale of 50.04 million existing ordinary shares.

Of the total 250.2 million issue shares, 50.04 million shares will be available to the Malaysian public via balloting and 50.04 million shares will be allocated to eligible directors and employees under the pink form allocations.

Another 125.1 million shares are designated for private placement to selected Bumiputera investors approved by the Ministry of Investment, Trade, and Industry (Miti), while the remaining 25.02 million shares will be reserved for private placement to selected investors.

Proceeds from the IPO have been earmarked for the expansion of its fabrication facility, storage, office and new research and development (R&D) centre. Swift Energy will add a mezzanine level and construct a new three-storey building within its facility, which will nearly double its operational space.

Additionally, the company will invest in machinery, equipment and software to enhance the group’s capacity, efficiency and productivity.

The IPO proceeds will also support the establishment of a dedicated R&D centre to drive innovation and improve product offerings.

The company aims to expand its business in Indonesia by setting up a subsidiary with an office in Jakarta to better serve its local customers, strengthen its market presence, and streamline project permits and technical support for existing installations.

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

Swift Energy and its subsidiaries provide industrial automation and power systems, including process control, Ex solar PV, and power distribution and other systems, catering mainly to the oil & gas, grain products, edible oils, food manufacturing and utilities industries.

It also distributes power and industrial electrical products, along with provision of technical services for these systems.

Based in Malaysia, with operations in Thailand, Singapore, and China, the company’s reach extends to South Africa, Indonesia, Ghana, Papua New Guinea, Vietnam, and more.

Swift Energy's business model leverages an indirect distribution channel, supplying its systems and solutions through intermediaries such as engineering, procurement, construction and commissioning (EPCC) and engineering firms, as well as direct connections with manufacturing plants and equipment manufacturers.

Its chief executive officer Tan Bin Chee said that the underwriting agreement marks a significant milestone in the company’s IPO journey, serving as both a first step and a strong motivation to stay committed to delivering reliable industrial automation and power systems.

“With plans for expansion of our fabrication facilities, investment in machineries, and establishment of a dedicated R&D centre, we are ready to elevate our production capacity and deliver exceptional value to our clients.

“Supported by an experienced leadership team and strategic partnerships with global brands such as Siemens, we are confident in our ability to drive innovation and long-term success for our customers and stakeholders,” Tan added.