Swift Energy gains 41% at close of ACE Market debut in 2025's first listing

Thursday 09 Jan 2025

KUALA LUMPUR (Jan 8): Swift Energy Technology Bhd (KL:SET) ended its first day of listing with a 41.07% gain; it was the first listing for 2025, after the industrial services firm’s initial public offering (IPO) grossed RM84.07 million.

The strong debut reinforces optimism for a boom in the market that last year saw the highest number of IPOs in nearly two decades. This year, Bursa Malaysia is aiming to host 50 IPOs.

The counter opened at 36 sen, up 29% against its IPO price of 28 sen. It ended its maiden trading session 11.5 sen higher or up 41.07% at 39.5 sen, making it the most active stock on Bursa Malaysia on Wednesday. The ACE Market stock’s intraday high was 40 sen, while its intraday low was 33.5 sen.

At the closing price of 39.5 sen, Swift Energy's market capitalisation stands at RM395.3 million, compared with its expected market capitalisation of RM280.22 million during its prospectus launch last month. The counter saw a total of 332.82 million shares changed hands.

Investors snapped up Swift Energy shares during its IPO, with the public tranche oversubscribed by more than 58 times. Shares set aside for eligible persons and Bumiputera investors were fully subscribed.

Private placements of both new and existing shares to select investors were also fully taken up.

The IPO raised RM70.06 million for Swift Energy from the sale of issue shares, of which RM28 million 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 will also utilise RM2.2 million to buy new machinery, equipment and software, RM4.03 million for business expansion, RM15 million to repay borrowings, RM13.35 million for working capital, RM1.48 million for another dedicated research and development centre and RM6 million to defray listing expenses.

An offer for sale of existing shares under the IPO, meanwhile, raised RM14.01 million that will go entirely to its selling shareholder Blueprint Capital Sdn Bhd.

Blueprint Capital is mainly controlled by Swift Energy chief executive Tan Bin Chee and corporate affairs director Suzana Abu Bakar. Post-IPO, Blueprint Capital's direct stake in Swift Energy has been diluted to 31.61% stake from 47.5%.

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

Edited ByJason Ng & Esther Lee

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