SOLAR photovoltaic (PV) and earthing and lightning protection (ELP) specialist Pekat Group Bhd has set a new record for initial public offering (IPO) demand during its nine-day public subscription from June 2 to 10.
The company’s which in en route to a listing on the ACE Market of Bursa Malaysia has attracted funds worth RM794.5 mil chasing after only RM10.3 mil worth of its public portion shares on sale.
Under its listing exercise which is tentatively fixed for June 23, Pekat Group has issued 138.7 million new shares representing approximately 21.5% of its enlarged share capital at an issue price of 32 sen/share.
Its 32.2 million new shares for the Malaysian public portion was oversubscribed by 76 times with a total of 34,963 applications for 2.5 billion shares received.
The RM794.5 mil subscription amount received was the highest since 2019 – surpassing the previous records set by Volcano Bhd and Flexidynamic Holdings Bhd – which raked in RM512.8 mil and RM444.9 mil respectively in subscription earlier this year.
The Bumiputra portion of Pekat Group’s shares was oversubscribed by 44 times after a total of 13,168 applications for 725.5 million shares were received.
Meanwhile, 21,795 applications for the remaining public portion amounting to 1.8 billion shares were received, representing an oversubscription rate of 108 times.
The 16.1 million new shares for its eligible directors and employees as well as persons who have contributed to the success of the Pekat Group had also been fully subscribed.
The placement agent has also confirmed that all the private placement and offer shares to selected investors and identified Bumiputera investors approved by the Ministry of International Trade and Industry (MITI) by way of private placement to selected investors have also been fully placed out.
Moving forward, the company’s managing director Chin Soo Mau said Pekat Group targeted to grow its order book for solar PV division’s contribution to the group’s revenue to between 60% and 70% in the current financial year ending Dec 31, 2021.
About two-thirds of its order book is from the solar PV division which would provide a steady revenue stream for the group. Its order book comprised unbilled contracts amounting to RM154.9 mil for both the solar PV, and the ELP divisions as of May 3.
“Pekat will tap into the RM1 bil local solar market with potential jobs this year, driven mainly from the Net Energy Metering (NEM) 3.0 programme,” projected Chin.
“So far, we have secured over 22 megawatt (MW) under the net offset virtual aggregation (NOVA) programme for commercial premises under NEM 3.0, and we are applying for more as we aim to achieve 10% share from the total 300MW quota allocated for commercial premises.”
NEM 3.0 is a new solar rooftop initiatives by the Government to provide opportunity for more users to install the solar PV systems on the roofs of their respective buildings for
electricity bill reduction. The programme which offers a quota of 500MW from 2021 to 2023 have three new programmes – NEM Rakyat, Nem GoMEn and NOVA. – June 14, 2021
