KUALA LUMPUR (Sept 24): Shares of Express Powerr Solutions (M) Bhd (KL:XPB) ended their first day of listing with a 12.5% gain after the generator rental firm’s initial public offering (IPO) on the ACE Market raised RM49.08 million.
The counter closed at 22.5 sen on Wednesday versus its IPO price of 20 sen per share, giving it a market capitalisation of RM210.3 million. Earlier, it opened 7.5% higher at 21.5 sen on a volume of 28.44 million shares, and climbed to as high as 24 sen.
Express Powerr was the most active counter of the day on Bursa Malaysia, with 170.97 million shares changing hands.
Demand during its IPO saw its public tranche oversubscribed by 13.55 times. The Bumiputera portion was oversubscribed by 9.92 times, while the remaining public portion was oversubscribed by 17.18 times.
Shares set aside for eligible persons and select investors offered through private placement were fully taken up, while Bumiputera investors were fully placed out after clawback and reallocation.
The Selangor-based company 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.
More than half of the RM36 million allocated to the company will be used to purchase generators, 13.9% for loan repayment and 11.3% for medium- and high-voltage equipment, with the balance set aside for working capital and listing expenses.
The remaining RM13.08 million will go to the sole selling shareholder and managing director Lim Cheng Ten.
Express Powerr has a dividend policy to distribute 30%-50% of profit after tax, according to the prospectus.
Mercury Securities is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.
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