Powerwell expects to raise RM21.9 mil from listing

ELECTRIC switchboard and switchgear manufacturer, Powerwell Holdings Bhd has set its initial public offering (IPO) at 25 sen per share for ACE market listing and expects to raise gross proceeds of some RM21.9 mil.

In its prospectus filed with Bursa Malaysia on Jan 2, the company said it intends to use the proceeds from the public issue of shares to support its business strategies by enhancing its product range and offerings, growing its market share, and streamlining and enhancing its operational and production process.

Powerwell has allocated RM10.3 mil from the expected gross proceeds of RM21.9 mil for capital expenditure requirements comprising purchases of machinery and equipment along with upgrades to the group’s enterprise resource planning system.

“We plan to allocate approximately RM3.9 mil from our IPO proceeds to obtain third-party IEC standards-compliant certifications for our LV switchboards and MV switchgears by sending them to IEC-recognised certification bodies for the conduct of type-tests. This will enhance the status and marketability of such products,” it said.

The IPO involves 145.46 million shares comprising a public issue of 87.4 million new shares and an offer for sale of 58.06 million existing units.

The public issue of 87.4 million comprises 23.8 million shares to the Malaysian public, 60.7 million shares for private placement to Bumiputera investors, and 2.9 million shares for private placement to institutional and selected investors. – Jan 2, 2020

 

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