This article first appeared in Capital, The Edge Malaysia Weekly on October 27, 2025 - November 2, 2025

APART from Sarawak-based Insights Analytics Bhd’s listing on Monday, Oct 27, Powertechnic Group Bhd is also making its debut on Bursa Malaysia this Tuesday, Oct 28.

Powertechnic, headed for the ACE Market, is involved in the installation and maintenance of crane and hoist systems as well as elevated platform systems. It is set to raise RM29.4 million from its initial public offering (IPO) via the issuance of 63 million new shares and an offer for sale of 21 million existing shares. The issuance of new shares should raise RM22.05 million for Powertechnic while the sale of existing shares will raise RM7.35 million for the group’s managing director Ivan Ng Keh Chai and executive director Choo Chee Yong.

The IPO shares are priced at 35 sen each and will give the company a market capitalisation of RM109 million, valuing it at about 17 times the trailing earnings.

With the public proceeds of RM22.05 million, the group plans to use RM6.7 million for general working capital, RM4.5 million for the setting up of new product showrooms and sales offices with storage space and marketing expenses, RM3.8 million for capital expenditure and RM2.8 million for the repayment of bank borrowings. A total of RM4.3 million has been set aside as listing expenses.

The retail portion of the IPO was oversubscribed 46 times ahead of its listing.

The company, which is headquartered in Kulai, Johor, in the Johor-Singapore Special Economic Zone (JS-SEZ), is well-positioned to benefit from the increased industrial and infrastructure development within the region, notes Malacca Securities in a report, driven by cross-border investments and manufacturing expansion from companies investing in the zone.

“This can be proven within the increasing revenue from the Southern region, from RM5.5 million in FY2021 to RM13.3 million in FY24, representing a three-year CAGR (compound annual growth rate) of 33.8%,” notes the research house.

It has a projected three-year earnings CAGR of 20.5%, with core net profit anticipated to reach RM4.5 million to RM6.4 million over the next three years.

Powertechnic, whose business was established in 2002, said in its prospectus that it intends to distribute at least 30% of its annual audited net profit after minority interest as dividends to shareholders.

Malacca Securities has a fair value of 42 sen per share on Powertechnic, representing a 20% upside from its IPO price of 35 sen. The valuation is based on a price-earnings ratio of 22.3 times and FY2026 forecast earnings per share of 1.87 sen. 

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