PETALING JAYA: Powerwell Holdings Bhd is looking to list on the ACE Market of Bursa Malaysia and plans to use the proceeds raised from its initial public offering (IPO) for capital expenditure (capex), certification expenditure and working capital.
In a draft prospectus exposure on the Securities Commission Malaysia website, Powerwell said its IPO involves 145.5 million ordinary shares comprising public issuance of 87.4 million new ordinary shares and offer for sale of 58.1 million existing ordinary shares.
The public issue of 87.4 million new shares comprises 23.8 million issue shares to the Malaysian public, 60.7 million issue shares by way of private placement to bumiputra investors and 2.9 million issue shares by way of private placement to institutional and selected investors.
The gross proceeds raised from the public issue will be used for capex (47%), certification expenditure (17.69%), working capital (16.55%) and to defray estimated listing expenses (18.76%).
The capex includes purchase of machinery and equipment, and enhancement of ERP systems and hardware while working capital includes purchase of materials and components, and marketing activities.
Powerwell is involved in the design, manufacturing and trading of electricity distribution products which comprise LV (low voltage refers to voltage less than 1kV) switchboards, MV (medium voltage refers to voltage equal or greater than 1kV and less than 50kV) switchgears and related products.
Its principal markets are Malaysia, Vietnam, Bangladesh, Indonesia, Philippines, Cambodia, Singapore, Pakistan, Myanmar, Dubai, Japan and Qatar. It has factories and offices in Malaysia and Vietnam, and a representative office in Indonesia.
As at March 28, its order book stood at RM63.86 million, which will be billed progressively up to the next 24 months.
For the financial years ended Dec 31, 2016 (FY16), 2017 (FY17) and 2018 (FY18), Powerwell achieved revenues of RM92.5 million, RM106.4 million and RM105.4 million respectively. It registered net profits of RM8.4 million, RM13.9 million and RM12.1 million for the three financial years respectively.
Source: The Sun Daily