From left: Choo Chee Yong, executive director of Powertechnic; Ivan Na Keh Chai, managing director; Ku Mun Fong, head of corporate finance of TA Securities Holdings Bhd; and Chin Wai Kit, assistant vice-president of corporate finance
KUALA LUMPUR: Powertechnic Group Bhd
expects to raise RM22.05mil in gross proceeds via an issuance of 63 million new shares at 35 sen apiece, en route to its listing on the ACE Market of Bursa Malaysia on Oct 28, 2025.
The firm, which specialises in the provision of crane and hoist systems, elevated platform systems and elevators, said at its prospectus launch it is embarking on the initial public offering (IPO) as it seeks to accelerate automation investments and market expansion in the lifting and handling equipment industry.
Of the proceeds, RM4.5mil will be used to set up new product showrooms and sales offices with storage space and marketing expenses and RM3.8mil will be utilised for capital expenditure, mainly for automated machines.
With the remaining funds, RM2.8mil will be used to repay banks, RM6.65mil for general working capital and RM4.3mil for estimate listing expenses.
"The IPO will empower us to enhance our production capabilities through automation for our fabrication processes, strengthen our market presence in new target areas such as Penang and Sarawak as well as Singapore and Indonesia, and reinforce our commitment to delivering reliable lifting systems," Powertechnic managing director Ivan Na Keh Chai.
Group executive director Choo Chee Yong added that the IPO will not only expand the group's footprint across the country, but the automation investment will also enhance its delivery capabilities and elevate the value it brings to clients.
Powertechnic will have a market capitalisation of RM108.62mil upon listing, based on the issue price of 35 sen a share and enlarged share capital of 310.34 million shares.
Under the New Industrial Master Plan 2030 (NIMP 2030), the manufacturing and manufacturing-related services sector is forecast to grow at a CAGR of 6.5% between 2022 and 2030, with general industrial machinery and equipment expected to grow at a CAGR of 8% by 2027.
This outlook is further reinforced by Malaysia’s economy projected growth of 4% to 4.8% in 2025 and growth in user industries such as construction and manufacturing.
"These favourable conditions are expected to spur greater demand for safe, efficient, and customisable lifting solutions, providing the foundation for Powertechnic’s continued expansion and innovation efforts," said Powertechnic in a statement.
