Generator rental services provider Express Powerr Solutions (M) Bhd has submitted its prospectus for an upcoming initial public offering (IPO) on Bursa Malaysia’s ACE Market.
The IPO will involve the offering of up to 211.9 million shares, which includes the sale of up to 51.15 million existing shares and the issuance of 160.75 million new shares.
Of the new shares, 36.54 million are designated for the Malaysian public, while 40.19 million are reserved for Bumiputera investors approved by the Ministry of Investment, Trade, and Industry (Miti). Additionally, 25.57 million shares will be allocated to eligible individuals via pink form allocations, and 58.45 million shares will be distributed through private placements to select investors.
The offer for sale of the 51.15 million existing shares will also take place through private placement to Miti-approved Bumiputera investors.
Express Powerr, which aims to be listed on the ACE Market, operates 49 large-scale power generators, providing essential services during planned maintenance, emergencies, and for backup purposes. The company also ventured into solar photovoltaic solutions in April of this year.
Having started its generator rental business in 2005, Express Powerr currently serves parts of Peninsular Malaysia and Sabah, with expansion plans targeting the northern states of the peninsula. The company also intends to purchase 16 additional large generators and strengthen its sales and technical teams.
For the financial year ending December 31, 2023 (FY2023), Express Powerr reported a profit after tax (PAT) of RM9.89 million, reflecting a 31.93% increase from RM7.49 million in FY2022. Revenue rose by 25.51% to RM39.42 million, up from RM31.41 million the previous year.
In FY2021, the company recorded a PAT of RM5.66 million on revenue of RM19.34 million, with a profit margin of 29.25%, higher than the 23.86% margin in FY2022 and 25.08% in FY2023.
Proceeds from the IPO will be used to purchase additional generators, medium- and high-voltage equipment, and support working capital needs. The funds raised from the sale of existing shares will go to managing director Lim Cheng Ten, who will retain a 71% stake in the company following the IPO.
Mercury Securities Sdn Bhd will act as the principal adviser, underwriter, and placement agent for the offering.
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