PETALING JAYA: Powerwell Holdings Bhd is heading for listing on the ACE Market, with its initial public offering to entail an issuance of 145.5 million shares at 25 sen each, comprising a public issue of 87.4 million new shares and an offer for sale of 58.06 million existing shares.
Based on the IPO price of 25 sen a share, the group expects to raise total gross proceeds of RM21.85 million. Of this, 47% or RM10.27 million would be used for capital expenditure, 17.69% or RM3.9 million will go towards certification expenditure, 16.55% or RM3.62 million for working capital and the remainder to be used to pay off listing expenses.
“The machinery and equipment we will be purchasing are of the more advanced type. This will improve the efficiency of the production process as well as to increase the production capacity,” Powerwell managing director Jason Tham said in a statement.
Powerwell’s tentative listing date is Jan 22. The applications will be accepted from 10am on Jan 2, 2020 and will close at 5 pm on Jan 10, 2020.
Powerwell is involved in the design, manufacturing and trading of electricity distribution products which comprise low voltage (LV) switchboards, medium voltage switchgears (MV) and related products.
The group’s principal markets over the past three financial years have been Malaysia, Vietnam, Bangladesh, Indonesia, the Philippines, Cambodia, Singapore, Pakistan, Myanmar, Dubai, Japan and Qatar.
Powerwell’s market share in Malaysia was 2.34%, as at the end of FY18 ended Dec 31.
Moving forward, the group said it has various strategies in place, including enhancing its product offerings and range through the commercialisation of its “Powerwell” branded MV switchgears.
‘With our own Powerwell branded MV switchgear, we aim to increase our competitiveness in the industry by growing our brand, market presence and market share. Further, we plan to obtain IEC standards-compliant certification for a wider range of our products, including the Powerwell MV switchgear upon successful development to remain competitive.
“We will also augment our efforts in growing our replacement market business and continue increasing our manufacturing and marketing activities in the domestic and regional market in order to grow our market share,” it said.
Mercury Securities Sdn Bhd is the sole underwriter, principal adviser, sponsor and sole placement agent for this listing exercise while BDO Capital Consultants Sdn Bhd is the financial adviser.
source https://www.thesundaily.my/business/powerwell-to-raise-rm2185m-from-ace-market-listing-GC1848954
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