ACE Market-bound Powerwell Holdings Bhd's planned initial public offering (IPO) involves 145.46 million shares comprising a public issue of 87.4 million new shares and an offer for sale of 58.06 million existing units in the electric switchboard and switchgear manufacturer.

Powerwell intends to use the public issue proceeds to finance the company's capital and certification expenditures besides the group's working capital and listing expenses.

"Our principal markets are Malaysia, Vietnam, Bangladesh, Indonesia, Philippines and others (Cambodia, Singapore, Pakistan, Myanmar, Dubai, Japan and Qatar) during the past three financial years," Powerwell said.

The company said it had been profitable during the past three financial years ended (FYE) 2016, 2017 and 2018. FYE2018 and FYE2017 profit after tax (PAT) stood at RM12.13 million and RM13.87 million respectively. For FY2016, Powerwell recorded a PAT of RM8.45 million.

The company said it plans to pay dividends. "It is our intention to pay dividends in future; however, such payments will depend upon a number of factors, including our group's financial performance, capital expenditure requirements, general financial condition and any other factors considered relevant by our board," it said.

Mercury Securities Sdn Bhd is the principal adviser, sponsor, as well as the sole underwriter and placement agent for Powerwell's IPO.

This post has been edited by nexona88: May 20 2023, 06:44 PM

wow so many IPOS coming out..i tot only UWS n Kim Hin Joo..

Yup. Many potential IPO for Ace Market..
But as for performance upon listing.... No comments 😑😒

do u know where can screen a list of available IPOs?

oh saw it when browsing the bursa webpage..haha..

This post has been edited by ~Curious~: Jun 25 2019, 10:52 AM

Now in miti...price 0.25

consider as a technology company,and they plans to pay dividends.Nice and consistent profits,Good to consider this ipo.I give 4.5 star for this ipo.

When listing date?

i cant find any prospectus on this company's IPO

listing approx on end of jan/feb no specific date yet

Listing on 22.1.2020

https://www.bursamalaysia.com/market_inform...?ann_id=3013312

25 sen

closing @ 5.00pm,10 Jan 2020

This post has been edited by nexona88: Jan 2 2020, 06:17 PM

Anyone buying this ipo?

Off for me. It's revenue slashed > 50% compare to 3 years ago. 2016 92M, 2017 106M, 2018 105M & 2019 44M.

I tried to hypno myself but failed.

Not able to find a good reason to convince myself of why to invest in a company that's losing out biz

Anyway IPO is a diff game compare to direct investment

Good luck to those who applied.

Hi 4IPO bro,

Would like to share my humble views and my ways of analysing IPOs with you.

If you look at their financial statements carefully, its FYE (financial year) for 2016 to 2018, but FPE (financial period) for 2019. If you look at first few pages in prospectus, in page IX, it shows FPE stands for 7-month financial period.

It means for the figures stated, 2016 - 2018 they're stated on a full-month basis while 2019, stated on a 7-month basis.

REVENUE:
2016 - RM93m
2017 - RM106m
2018 - RM105m
2019 7-month - RM45m (if you annualise it on a full year basis, it would be RM77m)

PROFIT:
2016 - RM8.4m
2017 - RM13.8m
2018 - RM12.1m
2019 7-month - RM3.4m (if you annualise it on a full year basis, it would be RM5.8m)

Conclusion: Revenue dropped, GP margin dropped, PAT margin dropped. But let's give it a chance, do more homework - avoid missing out any opportunities. Let's find out why did the revenue and profit dropped in 2019.


In Prospectus Page 161, Management's discussion and analysis of financial performance

In FPE 2019, Our revenue decreased by 1.61 million or 3.5% compared to FPE 2018. Mainly due to decrease in project value of LV segment projects.

Comment: If you compare 7-month Revenue for both 2019 and 2018, revenue in 2019 dropped by 3.5% only. So does it mean the revenue for first half of the year would be less, and second half would be more? Seasonal?


Okay now, the question is the IPO is cheap or expensive?

market cap at IPO: RM145m
PAT in 2018: RM12.1m

P/E = 145/ 12.1 = PER 12X using 2018 Profit after Tax


Annualised PAT in 2019: 5.8m

P/E = 145/ 5.8m = PER 25X using 2019 annualised Profit after tax

Conclusion: Not Cheap

Is it in the "hot" industry? Their customers are mainly in construction, M&E, EPCC et. Not very exciting.

Hope the sharing is useful.

Thanks for your detailed analysis, though I have not read the prospectus at all, but based on the profitability trend, it doesn't look very promising, i'm sure they (company/management/advisers/authorities) in stripping of one off events. However, would still need to look at the industry overall, how it peers are doing. The huge dip in profitability is really bad, but it looks like an extraordinary event occurred during FPE2019.

Thanks for your PE analysis, do you also happen to have your COMPS studies? Thanks in advance

Unless they can replicate MI's success few years back. Otherwise I don't think any investor would apply, unless they have some insights which we don't.

My first impression looking at some of the key facts, the valuation is really on the high side, typically people would look at current PE or forward PE, no way they price it based on historical PE.

Its not a tech company, but more of a traditional electrical switchboard manufacturer. Although its operation is modernized, competition is stiff.

Done apply 300k units powerwell...this ipo will fly on 1st day becoz small allocation for public and the price is cheap...the big portion of share still held by original owners...

Issue Price (RM) : 0.25

Opening Date : 02 Jan 2020
Closing Date : 10 Jan 2020
Ballot Date : 14 Jan 2020
Listing : 22 Jan 2020

issuing house services : Tricor Investor & Issuing House Services Sdn Bhd

Advisor : M&A SECURITIES SDN BHD