PETALING JAYA: Industrial automation and power systems provider Swift Energy Technology Bhd, en route to a listing on the ACE Market, aims to raise RM70.06mil through an initial public offering (IPO) with an issue price of 28 sen per share.
The company plans to utilise approximately 40% or RM28mil of the IPO proceeds to expand its fabrication facility, storage, and office space while also establishing a new research and development (R&D) centre in Shah Alam.
The expansion is designed to cater for the growing demand for its products and systems, enhancing the group's capacity to handle multiple projects or orders concurrently.
The group has also earmarked 21.4% or RM15mil of the proceeds to repay its borrowings and 19% or RM13.3mil for working capital requirements.
Approximately 3.1% or RM2.2mil of the proceeds will be used for the purchase of machineries, equipment and software, while another 2.1% or RM1.5mi is earmarked for setting up a dedicated R&D centre to drive innovation.
In addition, 5.8% or RM4mil of the proceeds will support the group’s business expansion into Indonesia, including the establishment of a wholly-owned subsidiary and an office in Jakarta.
The remaining 8.6% or RM6mil will be utilised to cover its listing expenses.
Swift Energy chief executive officer Tan Bin Chee said the group is committed to empowering industries with innovative solutions in industrial automation and power systems.
“Our offerings - including process control, solar photovoltaic (PV) systems and power distribution systems - support critical sectors such as oil and gas, grain products and food manufacturing industries,” he said.
Tan noted that the company has seen significant growth in demand for its solar PV systems in recent years due to the global shift towards sustainability and renewable energy.
“As for grain products and food manufacturing, food security remains a key factor for countries such as China and, more recently, the African region where there is a high demand for solutions that will enable the countries within the said region to strengthen their basic food supply chain,” he said.
“From our strong roots in Malaysia, we have expanded across key regional markets and our global presence reflects our resilience, growth and ability to deliver world-class solutions tailored to diverse industries,” he said.
He affirmed that with the IPO proceeds, Swift Energy is committed to driving long-term growth, innovation and profitability.
Swift Energy is scheduled to be listed on the local bourse on Jan 8, 2025.
Based on its enlarged share capital of about one billion shares and the IPO price of 28 sen, the company is expected to achieve a market capitalisation of RM280.22mil.
Its shares have been classified as Shariah-compliant by the Shariah Advisory Council of the Securities Commission.
