Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on January 15, 2020

KUALA LUMPUR: Powerwell Holdings Bhd, to list on Bursa Malaysia’s ACE Market on Jan 22, saw the public tranche of its initial public offering (IPO) oversubscribed 24.27 times.

In a statement yesterday, Powerwell said it received 7,219 applications for 601.38 million shares with a value of RM150.34 million for 23.8 million shares made available for application by the Malaysian public.

The IPO entails a public issue of 87.4 million shares and an offer for sale of 58.06 million existing shares.

The 63.6 milllion shares and 49.71 million offer shares offered to institutional and selected investors as well as bumiputera investors have also been fully placed out.

Under the listing, Powerwell will raise RM21.85 million, of which RM10.27 million earmarked for capital expenditure, RM3.87 million for certification expenditure and RM3.62 million for working capital. The remaining RM4.1 million is for the estimated listing expenses.

“We are elated by the oversubscription of our IPO shares of over 24 times, a testimony of the trust and confidence that investors have in our business model.

“The great start to the year is further accentuated with good news as we managed to secure orders of over RM15 million, expected to be delivered this year,” said Powerwell managing director Jason Tham.

Mercury Securities Sdn Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.

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