POWERWELL TO RAISE RM21.85 MLN FROM LISTING EXERCISE

SITI RADZIAH HAMZAH

KUALA LUMPUR, Jan 2 (Bernama) -- Powerwell Holdings Bhd aims to raise RM21.85 million through a listing on Bursa Malaysia's ACE Market this month.

The electricity distribution product maker said its initial public offering (IPO) would comprise a public issue of 87.4 million new shares and an offer for sale of 58.06 million existing shares at 25 sen.  

Powerwell is an investment holding company, while its subsidiaries are involved in the design, manufacture and trading of low voltage switchboards, medium voltage switchgears and related products.

In a statement in conjunction with the launch of its prospectus today, the company said RM10.27 million of the RM21.85 million was earmarked for capital expenditure involving the purchase of machinery and equipment as well as enhancement of Powerwell’s enterprise resource planning systems and hardware.

Another RM3.87 million was allocated for certification expenditure and RM3.62 million would be for working capital, it said. The remaining RM4.10 million will be for estimated 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,” said managing director Jason Tham. 

On its listing on the ACE Market, Powerwell’s market capitalisation will rise to be RM145.14 million based on its enlarged share capital of 580.55 million shares.

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.

The tentative listing date is Jan 22, 2020.

-- BERNAMA

 

TAGS:

Powerwell Holdings, IPO, ACE Market, Bursa Malaysia