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KUALA LUMPUR (Aug 20): Generator rental company ACE Market-bound Express Powerr Solutions (M) Bhd, which counts electricity utility companies as its biggest customers, plans to venture into the oil-and-gas (O&G) sector to broaden revenue streams, while growing its solar photovoltaic (PV) business.
Express Powerr’s revenue is significantly concentrated among a few major clients. In the financial year 2023 (FY2023), Tenaga Nasional Bhd (KL:TENAGA) (TNB) was the company’s largest customer, accounting for nearly 40% of total revenue, although this contribution declined to 27% in FY2024.
Other key clients include Kejuruteraan Elektrik KB Sdn Bhd and Kejuruteraan Kuasa Bumi Sdn Bhd.
“Going forward, as we expand into O&G and diversify our portfolio, reliance on TNB will continue to decline. That said, TNB will remain a significant client,” Express Powerr managing director Lim Cheng Ten said at the company’s IPO prospectus launch on Wednesday. The diversification strategy is designed to mitigate concentration risk and achieve a more balanced customer mix, he noted.
Express Powerr, which plans to list on the ACE Market on Sept 24, primarily rents generators and supplies-related equipment such as distribution boards, transformers, switchgear, load banks and cables.
It ventured into solar PV in late 2024, with a current focus on residential installations, which Lim said is still in its infancy.
“[Moving forward], we see strong growth potential in the oil-and-gas sector, where reliable, high-capacity power is essential, especially in offshore and remote environments,” Lim said at the company’s prospectus launch on Wednesday.
He noted that contributions from O&G would likely begin in the fourth quarter of financial year 2025, as Express Powerr is currently in discussions with industry players.
Through its IPO, Express Powerr aims to raise as much as RM49.08 million, of which RM36 million will be channelled to expansion — mainly for the purchase of 36 additional generators and medium- to high-voltage equipment — while RM13.08 million will go to its selling shareholder, Lim.
The group currently operates a fleet of 115 generators, 70% of which are mobile truck-mounted units, with nearly 75% rated at 500kVA and above.
Express Powerr will be the 36th company to list on Bursa Malaysia in 2025, and the first since Oxford Innotech Bhd’s (KL:OXB) listing in July. No companies were listed in August.
“We are confident in our growth trajectory. Power demand will only continue to rise, and we are well-positioned to capture opportunities across multiple sectors,” Lim said when asked about timing of the listing.
The group’s board is chaired by Datuk Mohd Redza Shah Abdul Wahid, who also chairs Avangaad Bhd (KL:AVANGAAD) and sits on the boards of KPJ Healthcare Bhd (KL:KPJ) and Zelan Bhd (KL:ZELAN). Other directors include Aun Siew Kuan, who is also an independent non-executive director at property company WMG Holdings Bhd (KL:WMG).
Applications for Express Powerr’s initial public offering (IPO) shares will close on Sept 8.
Upon listing, Express Powerr will have a market capitalisation of RM186.9 million, based on an enlarged share capital of 934.4 million shares. This implies a price-to-earnings (PE) ratio of 11 times, based on its FY2024 net profit of RM16.6 million, on revenue of RM70.17 million.
The company has also set a dividend policy of 30%–50% of profit after tax (PAT), according to the prospectus launched earlier.
Mercury Securities is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.