PETALING JAYA: Powerwell Holdings Bhd debuted on Bursa Malaysia’s ACE Market at 25.5 sen, a 2% premium over its offer price of 25 sen.
At 11:46am, its shares were traded at 28.5 sen per share, a 14% premium from its issue price with over 220.12 million shares exchanging hands. It had reached a high of 30 sen earlier.
The group, a manufacturer of low voltage and medium voltage switchgears, raised RM21.85 million in the listing exercise.
From the proceeds, RM10.27 million has been earmarked for capital expenditure that entails the purchase of machinery & equipment and enhancement of its planning systems and hardware, while RM3.87 million will be utilised for certification expenditure.
As for the remaining sum, RM3.62 million will be used for working capital and RM4.1 million has been set aside to defray the listing expenses.
At the listing ceremony, Powerwell’s managing director, Jason Tham (pix) said the listing has provided the group with a platform to make further inroads into capital markets for its expansion.
“I am pleased that Powerwell is the first listing on the ACE Market this year and our listing exercise ended on a positive note. I would like to personally express my gratitude to all my fellow colleagues in Powerwell. Each and everyone played a huge part in bringing Powerwell up to where it is today.
“I like to motivate them, to elevate the company higher, to the next level as this latest chapter (of the company) has provided us with a platform to make further inroads into the capital markets for our expansion,” he said.
Rakuten Trade Research has initiated a buy call on the stock with a target price of 33 sen.
“Moving forward, we expect Powerwell’s earnings to be supported by gradual enhancement of local construction activities which will in turn increase the demand for electricity distribution products,” it said in a note this morning.
(from left) Powerwell Holdings Bhd executive director Rick Lee, executive director Catherine Wong, Tham Kin Yin, Jason, independent non-executive chairman Tang Yuen Ki, independent non-executive director Dr Tou Teck Yong and independent non-executive director Selma Enolil Mustapha Khalil
