KUALA LUMPUR (May 21): EI Power Bhd (KL:EIPOWER) surged in its trading debut on Thursday after the power engineering firm raised nearly RM96 million from its ACE Market listing.
The stock opened at 61 sen compared to its initial public offering (IPO) price of 48 sen per share. EI Power climbed to as high as 61.5 sen nearly immediately after opening then eased, closing at 55.5 sen. The last price valued it at RM385 million. The stock topped the most actively traded stock list after 174.7 million shares changed hands.
The strong debut follows strong demand for its shares during the IPO. Backed by OCK Group Bhd (KL:OCK), EI Power attracted applications from retail investors totalling more than 30 times above the number of shares on offer.
EI Power focuses on diesel generation and fuel distribution systems, as well as solar photovoltaic systems.
Apart from supplying mission-critical power systems to data centres that require large-scale, complex generation and distribution systems, the company based in Shah Alam, Selangor also offers conventional power solutions for commercial, industrial and residential buildings.
The IPO’s public issue of new shares grossed RM62.16 million, of which nearly half has been set aside as working capital to pay suppliers and hire more than a dozen new staff.
The company is allocating 29% for the acquisition of new headquarters that will also double up as its warehouse, and 16% for the installation of building energy efficiency systems. The rest will be used to set up an office in Thailand and a branch in Johor, as well as to cover listing expenses.
The offer for sale raised RM33.6 million for OCK Group — mostly known for providing network and infrastructure services to the telecom industry, EI Power chief executive officer Albert Chang, and substantial investor Siew Wei Foo.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO.
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