KUALA LUMPUR (Oct 6): Powertechnic Group Bhd is taking orders from investors at 35 sen per share for a slice of the company that specialises in cranes and elevators as part of its ACE Market listing.

The initial public offering (IPO) will raise RM29.4 million, of which RM22.05 million will go to Powertechnic for its expansion and operations, according to its prospectus released on Monday. The rest will go to managing director Ivan Na Keh Chai and executive director Choo Chee Yong.

Applications for the shares will be closed on Oct 14 and listing is scheduled for Oct 28.

Based in Kulai, Johor, Powertechnic installs and maintains crane and hoist systems including overhead, gantry, underhung and jib cranes as well as elevated platform systems such as dock leveller, table lifters, and tilting platform.

More than 80% of its annual revenue in the past two years came from provision of lifting systems while maintenance, repair and related services account for the rest. The company made a net profit of RM6.3 million on revenue of RM40 million in the 12 months ended June 2024.

At the IPO price, Powertechnic will have a market capitalisation of about RM109 million, valuing the company at about 17 times the trailing earnings.

Out of the total proceeds of about RM22.05 million from the public issue of new shares, the company plans to use about 20% to set up new product showrooms and sales offices and 17% as capital expenditure mainly for automated machines.

The company has also set aside 13% for repayment of bank borrowings and 30% as general working capital and the rest for estimated listing expenses.

Powertechnic also intends to distribute at least 30% of its annual audited net profit after minority interest as dividends to shareholders, according to the prospectus.

TA Securities is the IPO’s principal adviser, sponsor, underwriter and placement agent.