Powertechnic To Raise RM22.05 Mln In ACE Market IPO

KUALA LUMPUR, Oct 6 (Bernama) -- Crane and hoist systems company Powertechnic Group Bhd aims to raise RM22.05 million from its initial public offering (IPO) ahead of its listing on the ACE Market of Bursa Malaysia Securities Bhd on Oct 28, 2025.

Powertechnic managing director Ivan Na Keh Chai said proceeds from the IPO will be used mainly to fund business expansion and strengthen operations.

About RM4.5 million will go towards setting up new product showrooms and sales offices, RM3.8 million for capital expenditure, RM2.8 million to repay bank borrowings, RM6.65 million for working capital, and RM4.3 million to cover estimated listing expenses.

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He added that the funds will support the company’s expansion in Penang, Sarawak, Singapore and Indonesia.

“In Peninsular Malaysia, the main industrial focus has been in Selangor and Kuala Lumpur, followed by Penang and Kulim. Johor Bahru is now emerging as a rapidly growing industrial hub where we were fortunate to establish an early presence.

“Having built our base in the southern and central regions, our next focus is the northern region, with Penang and Kulim showing strong growth potential. In the east, we have been supplying to Kuching for some time, which supports our decision to expand there,” he told reporters at the company’s prospectus launch today.

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Meanwhile, Powertechnic group accountant Chin Yanjiang said the new facilities in Penang and Sarawak are scheduled for completion next year, barring unforeseen delays.

“Currently, our key marketing focus is on Penang and Kuching. At the same time, we are testing overseas expansion through digital marketing, particularly in Indonesia,” he said.

He added that Singapore is already part of Powertechnic’s existing market, and the company expects its regional marketing efforts to have a cascading effect that strengthens its overall reach.

On working capital, Chin said most of the allocation will be used for supplier payments and inventory expansion to support rising production demand.

“As we expand, we need to increase inventory and material supply to meet production needs. Hence, most of our working capital will be allocated for supplier payments,” he said.

Looking ahead, Chin said Powertechnic remains optimistic about its growth prospects over the next five years, supported by the expansion of its operational footprint and ongoing improvements in automation and marketing capabilities.

Powertechnic ‘s IPO involves the issuance of 63 million new shares at 35 sen each.

Of these, 15.6 million shares are for public subscription and 10 million for eligible directors, employees and contributors to the group’s success.

Another 19.6 million shares will be placed out to selected investors, while 17.8 million are reserved for private placement to approved Bumiputera investors under the Ministry of Investment, Trade and Industry (MITI).

The IPO is open for subscription until 5 pm on Oct 14, 2025.

TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.

-- BERNAMA