KUALA LUMPUR (July 22): Express Powerr Solutions (M) Bhd, a generator rental services provider, entered an underwriting agreement with Mercury Securities Sdn Bhd as part of its initial public offering (IPO) on the ACE Market of Bursa Malaysia.
In a statement on Tuesday, the group said its IPO exercise encompasses a public issuance of 180 million new shares made available to the public, representing 19.3% of its enlarged issued share capital.
Under the agreement, Mercury Securities will underwrite a total of 65.4 million new shares made available to the Malaysian public and pink form allocations. Mercury Securities is also the principal adviser, sponsor and placement agent for the IPO.
“This move will accelerate our expansion into new end-user markets, including the oil and gas industry, and broaden our geographical coverage,” said Express Powerr managing director Lim Cheng Ten.
Out of the 180 million new shares, 46.7 million will be made available to the Malaysian public via balloting while 18.7 million shares will be for eligible persons.
Meanwhile, 63.2 million new shares are set aside by way of private placement and 51.4 million new shares for Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
As part of the IPO, Express Powerr will also see an offer for sale of 65.4 million existing shares, representing 7% of its enlarged share capital, to eligible Bumiputera investors through private placement.
The group aims to list on the ACE Market in the third quarter of this year.
Aside from generators, Klang-based Express Powerr provides supporting equipment including distribution boards, generator sync panels, transformers, switchgears, load banks and cables to its clients.
In this segment, Lim expressed optimism about growing opportunities in the upstream oil and gas sector, as generators are needed to provide temporary power supply during operations.
The group is also in the rooftop solar space as an installer and investor.
Proceeds from the public issue have been earmarked for the purchase of generators and related equipment, repayment of bank borrowings, working capital, and funding the listing expenses.