Powerwell up 20% on Ace Market debut, eyes ECRL, MRT projects

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KUALA LUMPUR (Jan 22): Powerwell Holdings Bhd, which debuted on Bursa Malaysia's ACE Market today, rose as much as five sen or 20% to 30 sen in morning trades on investors' optimism in the electric switchboard and switchgear manufacturer's business outlook.

At 11:23am, Powerwell shares, which were listed at 25 sen each, were traded at 28.5 sen with some 216 million shares transacted. Powerwell was Bursa's most active stock.

Earlier, Powerwell shares opened up 0.5 sen or 2% at 25.5 sen.

At Powerwell's listing ceremony here today, executive director Ricky Lee claimed that the company, which has an outstanding order book of RM59 million, is a proxy to the recovery of Malaysia infrastructure projects.

"Looking at the announcements made by the government, the revival of these mega projects, including Bandar Malaysia, East Coast Rail Link (ECRL) and Mass Rapid Transit Line 3 (MRT3) that (are) being reviewed, we foresee construction activities picking up and we are quite positive for this year," Lee said.

He said Powerwell is keen to participate in these projects and that the group is doing a lot of marketing activities to achieve its aim.

He said the group, which is supplying its products to the MRT2, had also participated in the MRT1 and Kelana Jaya light rail transit (LRT) line projects. According to him, Powerwell is now tendering for LRT3 contracts.

Powerwell's prospectus indicates that the company's initial public offering (IPO) comprises a public issue of 87.4 million new shares and an offer for sale of 58.06 million existing shares in the company at 25 sen each.

At Powerwell's IPO price of 25 sen a share, the company has a market captalisation of RM145.14 million based on its expanded issued share capital of 580.55 units.

See also:
ACE Market-bound Powerwell IPO oversubscribed 24.27 times
Powerwell sets IPO price at 25 sen apiece to raise RM21.9m
Switchboard maker Powerwell seeks ACE Market listing