KUALA LUMPUR: Generator rental services provider, Express Powerr Solutions (M) Bhd has entered into an underwriting agreement with Mercury Securities Sdn Bhd as part of its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.
In a statement today, the company said the IPO exercise encompasses a public issue of 180 million new ordinary shares, representing approximately 19.3 per cent of its enlarged issued share capital, as well as an offer for sale of 65.4 million existing shares, representing seven per cent of its enlarged share capital.
Of the 180.0 million issue shares, 46.7 million issue shares will be made available to the Malaysian public via balloting, 18.7 million to eligible directors, employees and persons who have contributed to the group's success.
The remaining 63.2 million will be offered by way of private placement to selected investors, while 51.4 million will be placed with Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI).
Additionally, the company said all 65.4 million offer shares to be offered for sale will be made available to Bumiputera investors approved by the MITI through private placement.
"Pursuant to the underwriting agreement, Mercury Securities has agreed to underwrite a total of 65.4 million issue shares made available to the Malaysian public and pink form allocations,” it said.
Express Powerr managing director Lim Cheng Ten said the underwriting agreement marks a significant step towards listing on the ACE Market, accelerating expansion into new end-user markets, including the oil and gas industry, and broadening its geographical coverage.
"With this in mind, we see great potential in the oil and gas sector.
"As generator sets are widely used in the engineering, procurement, and construction of power grids as well as other generation and transmission projects, these developments reinforce the continued relevance of the generator rental business,” he said.
Express Powerr is scheduled to be listed on the ACE Market by the third quarter of 2025.
Mercury Securities serves as the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO exercise. - Bernama
