KUALA LUMPUR (Sept 19): Crane and hoist systems company Powertechnic Group Bhd, which is preparing to list on Bursa Malaysia’s ACE Market, has signed an underwriting agreement with TA Securities Holdings Bhd for its initial public offering (IPO).
Under the agreement, TA Securities will underwrite 15.6 million new shares to be offered to the Malaysian public.
“The signing of this underwriting agreement is a significant step forward as we progress towards our listing on the ACE Market,” said Powertechnic managing director Ivan Na Keh Chai in a statement on Friday.
Proceeds from the IPO will be used to invest in automation for fabrication processes, set up new showrooms and sales offices in Penang and Sarawak, and expand the company’s presence in northern Peninsular Malaysia, Sabah and Sarawak, Singapore and Indonesia, Na said.
The IPO comprises a public issue of 63 million new shares, representing 20.3% of the company’s enlarged share capital, and an offer for sale of 21 million existing shares, or 6.77%.
Of the 63 million new shares, 15.6 million will be allocated to the public and 10 million to eligible persons. Another 19.6 million will be offered to selected investors and 17.8 million to Bumiputera investors, both via private placement.
The listing date and offer price have yet to be determined.
TA Securities is acting as the principal adviser, sponsor, underwriter and placement agent for the IPO.
Johor-based Powertechnic is a specialist in lifting systems, including cranes, hoists, elevated platforms and elevators for industrial, commercial and residential markets. It also has a presence in Singapore.
The company said the IPO will strengthen its position as a lifting systems specialist and enable it to tap growth opportunities from Malaysia’s expanding manufacturing and construction sectors, which are driving demand for lifting and handling equipment.