KUALA LUMPUR: Swift Energy Technology Bhd, a provider of industrial automation and power systems, aims to raise RM70.06 million through a listing on the ACE Market for expansion of its facilities and into the Indonesian market.
At the launch of its prospectus today, the company announced that its initial public offering of 250.2 milion new shares would be priced at 28 sen per share.
The public portion of the IPO is open for subscription until December 23 and is projected to give the company a market capitalisation of about RM280.22 million.
Swift Energy, which has been deemed Shariah-compliant by the Securities Commission Malaysia, will be listed on Jan 8, 2025.
The company said 40 per cent of the proceeds from the IPO will be allocated to expand its Shah Alam fabrication facility and establish a new R&D centre; another 40.4 per cent is for debt repayment and working capital and 8.6 per cent to cover its listing expenses.
Another 5.8 per cent will be used to set up operations in Indonesia, while about 3.1 per cent will be used for the purchase of machineries, equipment and software, and 2.1 per cent earmarked for setting up a dedicated R&D centre to drive innovation.
"At Swift Energy, we are committed to empowering industries with innovative solutions in industrial automation and power systems. Our offerings, including process control, Ex-certified solar PV systems, and power distribution systems, support critical sectors such as oil and gas, grain products, and food manufacturing industries," Swift Energy chief executive officer Tan Bin Chee said in the statement.
"For instance, we have witnessed significant growth in the demand for our Ex solar PV systems in the past few years arising from the global shift towards sustainability and renewable energy within the oil and gas industry evident in commitments as announced in the National Energy Transition Roadmap (NETR) net zero emission target by Petronas in Malaysia and PTT Exploration and Production Public Company Limited's (PTTEP) net zero greenhouse targets in Thailand," he added.
Tan said, as for grain products and food manufacturing, food security remains a key factor for countries such as China and more recently the African region whereby there is a high demand for solutions which will enable the countries within the said region to strengthen their basic food supply chain.
Swift Energy exports to over 20 countries across Asia-Pacific, the Middle East, Africa, and Europe, with key markets including Thailand, Singapore, and China.
For the financial year ended 2023, the group achieved total revenue of RM92.43 million,
M&A Securities Sdn Bhd serves as the principal adviser, sponsor, underwriter, and placement agent for the IPO exercise.