ACE Market-bound Express Powerr to raise RM36mil from IPO

The Star

20 hours ago

From left: Express Powerr Solutions (M) Bhd non-independent executive director Rosli Jonid, Express Powerr managing director Lim Cheng Ten, Express Powerr independent non-executive chairman Datuk Mohd Redza Shah Abdul Wahid, Mercury Securities Sdn Bhd director Jamieson Chew Yen Loong and Mercury Securities head of corporate finance Eric Chong Soo Keng.
KUALA LUMPUR: Generator rental services provider Express Powerr Solutions (M) Bhd which is en route to be listed on the ACE Market of Bursa Malaysia on Sept 24, 2025, is expected to raise RM36.0 million through its upcoming initial public offering (IPO).
The IPO price is fixed at 20 sen per share, giving the company a market capitalisation of RM186.9 million upon listing, based on an enlarged issued share capital of 934.4 million shares.
Managing director Lim Cheng Ten said the proceeds would enable the company to expand its fleet by at least 36 units and acquire medium- and high-voltage equipment to support this expansion over the next three years.
Lim said Tenaga Nasional Bhd is expected to remain Express Powerr's largest revenue contributor, although its reliance has dropped to 60 per cent in 2024 from 95 per cent previously.
"Looking ahead, we see opportunities in the oil and gas (O&G) sector, where reliable, high-capacity power is critical, especially offshore and in remote environments. We plan to explore this further in the fourth quarter of the year,' he said.
He noted that with 27 O&G projects worth RM4.46 billion approved in the first nine months of 2024, demand for generator sets (gensets) in exploration and drilling is set to rise.
To reward shareholders, Lim said the company has adopted a dividend policy of 30-50 per cent of net profit.
On diversification, he said the group's solar business remains in its infancy and would not be a near-term focus.
Instead, Express Powerr aims to expand its presence within Malaysia, adding Penang and Kelantan to its current coverage of Selangor, Kuala Lumpur, Negeri Sembilan, Johor, Pahang and Sabah.
He also noted that although data centres are growing rapidly in Johor, Express Powerr does not supply gensets to them as they usually purchase directly from manufacturers.
"However, we can support them during emergencies,' Lim added.
At the event, Lim said the IPO would involve the public issuance of 180 million new shares, representing 19.3 per cent of enlarged share capital, and an offer for sale of 65.4 million existing shares (7.0 per cent).
Of the 180 million new shares, 46.7 million would be offered to the public via balloting, 18.7 million allocated to eligible directors, employees and contributors (pink form), 63.2 million placed out to selected investors, and 51.4 million reserved for Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI).
The 65.4 million offer shares would also be placed with Bumiputera investors approved by MITI.
Applications will close on Sept 8, 2025, at 5 pm.
Currently, Express Powerr operates a fleet of 115 generator units, 70 per cent of which are mobile truck-mounted sets.
Nearly three-quarters of the fleet comprises large generators of 500 kilovolt-ampere (kVA) and above, suited for high-demand applications.
For the financial year ended Dec 31, 2024, the group's revenue rose to RM70.2 million from RM19.3 million in 2021, translating into a three-year compound annual growth rate (CAGR) of 53.7 per cent.
Net profit grew at a CAGR of 43.1 per cent to RM16.6 million from RM5.7 million.
Mercury Securities is the principal adviser, sponsor, sole underwriter and placement agent for the IPO. - Bernama