KUALA LUMPUR (Sept 10): ACE Market-bound Express Powerr Solutions (M) Bhd said its public issue of 46.72 million new shares has been oversubscribed by 13.55 times.

The generator rental services provider received a total of 8,338 applications for 679.9 million shares worth RM135.99 million.

Of this, the Bumiputera portion drew 4,097 applications for 255.1 million shares — an oversubscription rate of 9.92 times. Meanwhile, the public portion attracted 4,241 applications for 424.8 million shares, representing a 17.18 times oversubscription rate.

The 18.69 million shares available for application by eligible persons were fully subscribed, while the private placement of 63.19 million shares to selected investors was also fully placed out. An additional 51.39 million shares and 65.41 million shares offered to Bumiputera investors were also fully taken up after clawback and reallocation.

Express Powerr managing director Lim Cheng Ten said the strong demand reflects investor confidence in the company’s prospects.
 
“The proceeds will allow us to strengthen our fleet and enhance our operations, giving us greater capacity and flexibility to serve more customers. With these improvements, we are better positioned to capture future opportunities, support critical infrastructure and create long-term value for our shareholders and customers alike," he said in a statement.

Notices of allotment will be posted to successful applicants by Sept 22. Express Powerr is scheduled to list on the ACE Market on Sept 24.

Express Powerr mainly provides generator rental services, including installation and disassembly, technical support, on-site operation personnel, and maintenance services.

The company owns a fleet of 115 generators, of which 70% are truck-mounted units, serving clients such as Tenaga Nasional Bhd (KL:TENAGA), mechanical and electrical companies, manufacturers, construction firms, event organisers, and government agencies.

At its IPO price of 20 sen per share, the company will have a market capitalisation of RM186.9 million, valuing it at about 11 times its FY2024 earnings.

The IPO will raise RM49.08 million in proceeds, of which RM36 million will go to the company for expansion and RM13.08 million to its sole selling shareholder, Lim.

More than half of the RM36 million allocated to the company will be used to purchase generators, 13.9% for loan repayment, 11.3% for medium- and high-voltage equipment, with the balance set aside for working capital and listing expenses.

Mercury Securities is the principal adviser, sponsor, sole underwriter, and sole placement agent for the IPO.

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