_20260330131459_theedgemalaysia.jpg&w=1920&q=75)
KUALA LUMPUR (March 30): 5E Resources Holdings Bhd, a scheduled waste firm, is seeking to raise up to RM119.21 million from its listing on the ACE Market.
Applications for the initial public offering (IPO) opened on Monday at 26 sen per share. 5E Resources will receive RM79.17 million from the issuance of new shares while a group of shareholders and executives will pocket RM40.04 million from the offer for sale of existing shares, the prospectus showed.
Application for the company's IPO will be closed on April 3, and the listing on the ACE Market is expected to be held on April 15.
"Being listed will enhance our financial strength, corporate visibility and governance standards," 5E Resources chief executive officer Lim Te Hua said at the prospectus launch ceremony.
5E Resources operates out of Pasir Gudang, Johor, offering end-to-end scheduled waste management services, including testing, collection, recovery and recycling, with about 18 years of operating history.
The company holds licences covering 34 out of the 77 regulated scheduled waste categories under Malaysian environmental regulations, and has an annual processing capacity of over 280,000 tonnes.
The aim is to expand its licence coverage to at least 44 waste categories and introduce additional recovery and recycling processes, including solid recovered fuel pelletising, spent electric vehicle battery recovery, and solar panel recycling.
The efforts will be driven by its planned new facility in Perak, which is expected to lift total annual capacity to nearly one million tonnes. About 72% of the funds from the IPO’s public issue will be allocated towards the facility’s construction as well as the acquisition of machinery and equipment.
In the nearer term, 5E Resources expects to see the start of its new plant in Johor within the next two months, which is expected to contribute to earnings from the financial year ending 2026 onwards.
Proceeds from the sale of existing shares, meanwhile, will go to Lim, 5E chairperson Loo Sok Ching, shareholders Wong Kim Fatt and Ban Kim Wah, and chief operation officer Shankar Narasingam.
Upon listing, 5E Resources is expected to have market capitalisation of RM400.4 million, implying a price-to-earnings ratio of 18 times based on its FY2024 earnings. In that year, the company posted a net profit of RM21.78 million on revenue of RM80.15 million.
That compares with its listed peers in the scheduled waste management sector like Tex Cycle Technology (M) Bhd (KL:TEXCYCL), which is currently trading at about 13 times earnings, and Hiap Huat Holdings Bhd (KL:HHHCORP) now valued at around 10 times, according to data from AskEdge.
TA Securities is the IPO’s principal adviser, sponsor, underwriter and placement agent.