KUALA LUMPUR: Waste management services provider, 5E Resources Holdings Bhd, aims to raise RM79.2 million through its initial public offering (IPO) in conjunction with its scheduled listing on the ACE Market of Bursa Malaysia Securities Bhd on April 15, 2026.
The IPO entails the issuance of 304.5 million new ordinary shares at an issue price of 26 sen per share.
Of the total, 77 million shares are allocated to the Malaysian public, 35 million shares to eligible directors, employees and persons who have contributed to the group’s success, while 192.5 million shares are set aside for Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
Additionally, 154 million existing shares will be offered for sale via private placement to selected investors.
Executive director and chief executive officer Lim Te Hua said the IPO proceeds will be utilised to support the group’s next phase of growth, including the development of a new scheduled waste management facility in Perak, as well as the acquisition of machinery and equipment and for working capital purposes.
"We expect construction of the Perak facility to be completed by the end of 2029. Operations are targeted to commence in the first half of 2030 (1H 2030),” he said during a press conference after the launch of the company's prospectus here today.
Lim added that the group has already acquired the land for the Perak facility.
"The acquisition process was quite extensive as it required compliance with various government requirements, and we have also obtained the Environmental Impact Assessment (EIA) approval, and are now moving into the construction phase,” he said.
He also said the group’s ongoing expansion at the PLO 321 facility in Johor Bahru, adjacent to its existing scheduled waste management facilities, is expected to commence operations in 2H 2026.
Chief operating officer, Shankar Narasingam said the group will prioritise ramping up production at its Johor facilities, including the new plant, before progressing further with the expansion in Perak.
"Our immediate focus is on the Johor plant, as it is important for us to build revenue and profitability from this facility,” he said.
The group currently has an approved annual capacity of 282,594 tonnes of scheduled waste, which is expected to increase to above 500,000 tonnes once the Johor facility becomes operational, and further expand to nearly one million tonnes with the completion of the Perak facility.
Meanwhile, group financial controller Sim Ting Ling said the industry outlook remains positive, supported by stricter enforcement of environmental regulations and higher penalties for illegal dumping.
"In terms of industry outlook, we expect the environment to become increasingly favourable for our business as we are seeing stricter enforcement by the government.
"Previously, the fine for illegal dumping was RM500,000, but it has now been increased to RM10 million, along with imprisonment for directors involved in such offences,” she said.
She highlighted the government’s greater emphasis on the circular economy, which aligns with the group’s focus.
"Our focus is on recovering as much value as possible from scheduled waste. This approach is in line with the government’s direction and is expected to support continued demand for our services,” she said.
TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO. - Bernama
