KUALA LUMPUR (Dec 9): Industrial services firm Swift Energy Technology Bhd has begun accepting applications from investors for its initial public offering (IPO) that would gross more than RM84 million on the ACE Market.
The IPO, priced at 28 sen per share, involves a public issue of 250.2 million new shares and an offer for sale of 50.04 million existing shares, according to its prospectus. All in, the listing offers investors a 25% stake in the Selangor-based company.
Application for the IPO shares will close on Dec 23, and listing has been scheduled for Jan 8, 2025.
At the IPO price, Swift Energy will have a market capitalisation of about RM280.22 million upon listing, and value the company at nearly 24 times the earnings for the financial year ended Sept 30, 2023.
Swift Energy is mainly involved in industrial automation and power systems, specialising in process control, Ex solar photovoltaics, power distribution and other systems for industries such as oil and gas, grain products, edible oils, and food manufacturing industries.
The company has offices in Thailand, Singapore and China, serving about 550 customers across 29 geographical markets, covering Asia Pacific, the Middle East, Africa and Europe. In FY2023, the company made a profit after tax of RM11.95 million.
Swift Energy also supplies power and industrial electrical products, as well as provides technical services for process control and power distribution systems.
The public issue is expected to raise RM70.06 million, of which 40% has been earmarked for the expansion of its fabrication facility, storage, office and the establishment of a new research and development centre in Shah Alam.
The company also plans to use the proceeds to support its business expansion into Indonesia, including the establishment of a wholly-owned subsidiary and an office in Jakarta, as well as repaying its borrowings, working capital requirements and the listing expenses.
Under the public issue, 25.02 million new shares are allocated to the Malaysian public, while 50.04 million shares are earmarked for eligible persons. Swift Energy will also sell 125.1 million to Bumiputera investors and 25.02 million shares to select investors through a private placement.
Meanwhile, the offer for sale of existing shares will raise RM14.01 million, which will go entirely to the selling shareholders Blueprint Capital Sdn Bhd, mainly controlled by Swift Energy chief executive Tan Bin Chee and corporate affairs director Suzana Abu Bakar.
Post-IPO, Blueprint Capital's direct stake will be diluted to 31.61% stake in the company, from 47.5% stake currently.
M&A Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.