Pekat makes strong Bursa debut


From the left: M&A Securities Sdn Bhd head of corporate finance Gary Ting; Hextar Group of Companies group chief executive office Datuk Eddie Ong; Pekat Group Bhd managing director Chin Soo Mau; Pekat Group Bhd executive director Tai Yee Chee ; Pekat Group Bhd executive director Wee Chek Aik; M&A Securities Sdn Bhd managing director of corporate finance Datuk Bill Tan

PETALING JAYA: Solar photovoltaic (PV) and earthing and lightning protection (ELP) specialist Pekat Group Bhd made a firm debut on the Ace Market of Bursa Malaysia yesterday, rising to a high of 93 sen.

It opened at 85 sen, or 52 sen above its offer price of 32 sen, and closed at 81.5 sen.

The shares were oversubscribed by 76 times after a total of 34, 963 applications for 2.5 billion shares were received from the public when it was opened for subscription from June 2 to 10.

Pekat’s initial public offering (IPO) entailed the issuance of 138.7 million new shares at 32 sen per share, raising proceeds of RM44.4mil.

Managing director Chin Soo Mau said RM18mil of the proceeds will be used for the construction of new head office and operational facilities in Elmina, Shah Alam, that will be completed by December 2023.

Pekat's solar panelsPekat's solar panels

“The new head office, with a total built-up area of about 114, 252 sq ft, will be an integrated facility with all the company’s facilities – head office, showcase area, central monitoring station, training centre, workshop and warehouse – under one roof, ” he said in a statement.

He added that the office will be a “zero net energy building” to showcase the use of solar PV as a renewable energy (RE) to power commerce and industrial buildings.

In addition, Pekat will utilise RM12.7mil for working capital requirements for the purchase of materials for its projects such as solar PV modules, solar PV inverters and ELP products and accessories; RM10mil to repay bank borrowings; while the remaining RM3.7mil to be used to defray the listing expenses.

Chin said Pekat is expected to benefit from the favourable government initiatives, financial incentives and tax breaks for the solar PV industry and a rebound in the construction sector, driven by the resumption of activities across all sub-sectors.

“Government policies and incentives will act as growth catalysts in the Malaysian solar PV industry at different end-user segments like residential, commercial and industrial.”

He said the current incentives and tax breaks such as the Green Technology Financing Scheme and the Green Investment Tax Allowance by Mida will continue to spur development in the solar PV industry.

“Pekat should benefit from the various solar PV programmes such as the latest rooftop solar initiative by the Energy and Natural Resources Ministry – Net Energy Metering 3.0 programme, which will be in effect from 2021 to 2023 with a quota of 500 MW allocated to further boost the uptake of solar adoption for residential, commercial and industrial users, ” he added.

As of May 3, Pekat has an existing order book worth RM154.9mil, comprising RM92.8mil for solar PV projects and RM62.1mil for ELP projects, of which RM117.2 mil is expected to be billed in 2021, RM24.8mil in 2022, RM11.5mil in 2023 and RM1.4mil in 2024.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights
   

Next In Business News

AmBank Islamic wins three at Global Banking & Finance Awards 2021
Indonesia clings to coal despite green vision for economy
Oil down on stronger greenback, rising U.S. rig count
Moody's: Islamic banks' retail finance focus helps weather pandemic
CIMB Islamic Bank’s rider entrepreneur scheme empowers B40
Maxis appointed telco partner in KLIA's digital transformation
Sime Darby Property reopens sales galleries, projects resume
Asian shares at 1-month low, default fears stalk China Evergrande
Cathay Pacific lowers Q4 capacity forecast as travel restrictions linger
Ringgit leads Asia FX lower; c.banks come into focus

Stories You'll Enjoy


Vouchers