Powerwell to raise RM21.8m from ACE listing

  • Corporate News
  • Thursday, 02 Jan 2020

From left: Powerwell independent non-executive director Dr Tou Teck Yong, executive director Ricky Lee, independent chairman Tang Yuen Kin, managing director Jason Tham, director/head of corporate finance of Mercury Securities Sdn Bhd Denis Lim, regional senior partner (Asean) & managing partner of BDO Capital Consultants Sdn Bhd Datuk Gan Ah Tee, executive director, advisory of BDO Capital Consultants Sdn Bhd, executive director Catherine Wong and independent non-executive director Selma Enolil Mustapha Khalil.

KUALA LUMPUR: Powerwell Holdings Bhd plans to raise RM21.8mil from its proposed listing on the ACE Market by issuing 87.4 million new shares at 25 sen.

The company's core businesses are designing and manufacturing and trading of electricity distribution products including low voltage switchboards, medium voltage switchgear and related products.

It said in a statement on Thursday that of the RM21.85mil, the company will allocate RM10.27mil for capital expenditure including purchase of machinery and equipment and the enhancement of its enterprise resource planning systems and hardware.

Upon its listing, its market capitalisation would increase to RM145.14mil based on its enlarged share capital of 580.55 million shares.

The public issue of 87.4 million new shares comprise of 23.80 million shares for the public; 60.70 million units will be placed out to approved Bumiputera investors; and the remaining 2.90 million shares will be placed out.

Of the 58.06 million existing shares, Powerwell will offer 8.35 million shares to its eligible directors and employees while the bulk or 49.71 million units will be placed out to institutional and selected investors.

Powerwell’s managing director Jason Tham said the proposed capex for new machinery enhance the production process and increase capacity.

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 listing date is Jan 22.

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