KUALA LUMPUR: Powertechnic Group Bhd, a specialist in the provision of crane and hoist systems, elevated platform systems and elevators, aims to raise RM22.05 million from its listing on the ACE Market of Bursa Malaysia to fund automation, expansion and working capital needs.
Managing director Ivan Na Keh Chai said the initial public offering (IPO) will enhance production capabilities through automation for fabrication processes and strengthen market presence in new target areas.
“We are aiming for expansion in Penang and Sarawak as well as Singapore and Indonesia,” he said at the prospectus launch today.
Na said the primary reason for establishing facilities in Penang and Sarawak is to support business growth in northern Peninsular Malaysia and East Malaysia by addressing potential markets driven by economic growth in these regions.
The set up of two new product showrooms and sales offices with storage space is expected to commence in fourth quarter 2025.
The group operates principally from its headquarters in Johor. The southern region of Peninsular Malaysia comprising Johor, Malacca and Negeri Sembilan has been its main revenue contributor accounting for 92.56% (RM15.06 million), 87.79% (RM17.75 million), 64.28% (RM19.68 million), 69.91% (RM27.97 million) and 77.88% (RM17.58 million), respectively, of its total revenue.
In Johor, beyond the Johor–Singapore Special Economic Zone (JS-SEZ), Powertechnic’s facility is located only 15 minutes from the main manufacturing hub, positioning the company to capitalise on new developments, including data centre projects.
“While not all data centres source their lifting systems from us, I can say that more than half, possibly up to 80–90%, of them are our clients. And this segment presents strong growth prospects in the years ahead,” Na said.
For the IPO, Powertechnic will issue 63 million new shares at 35 sen per share.
Proceeds will be used mainly for working capital (RM6.65 million), followed by the establishment of new product showrooms and sales offices with storage and marketing facilities (RM4.5 million).
Another RM3.8 million has been earmarked for capital expenditure, primarily to acquire automated machinery, while RM2.8 million will go towards repaying bank borrowings. The remaining RM4.3 million will be used to cover listing expenses.
Powertechnic is scheduled to be listed on the ACE Market of Bursa Securities on Oct 28. Upon listing, Powertechnic will have a market capitalisation of RM108.62 million based on the issue price of 35 sen per share and its enlarged issued share capital of 310,337,000 shares.
TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter, and placement agent for the IPO.