KUALA LUMPUR (April 22): Pekat Group Bhd, a solar photovoltaic (PV) and earthing and lightning protection (ELP) specialist, has inked an underwriting agreement with M&A Securities Sdn Bhd in conjunction with its initial public offering (IPO) exercise to list on the ACE Market of Bursa Malaysia.

Its IPO entails the issuance of 138.67 million new shares in the group, representing 21.5% of its enlarged issued share capital. As part of its listing exercise, the existing shareholders of the company will also make an offer for sale of 32.25 million shares to selected investors by way of private placement, according to Pekat in a statement today.

“Under the agreement, M&A Securities will underwrite a total of 48.37 million new shares made available for the Malaysian public and its eligible directors, employees as well as persons who have contributed to Pekat group’s success.

“The remaining 90.30 million new shares will be placed out to selected Bumiputera investors approved by the Ministry of International Trade and Industry and selected investors," Pekat said.

Besides being the underwriter, M&A Securities is also the adviser, sponsor and placement agent for Pekat's IPO.

Pekat managing director Chin Soo Mau said the listing will enable the group to raise funds for a new head office and operational facility, as it expands its solar PV and ELP businesses.

“Proceeds from the IPO would generally be used to expand our operations to take advantage of the upcoming growth in the solar PV industry, which will help us to expand our current capabilities," he said.

Part of the proceeds will also be used for working capital, in particular for the purchase of materials for its projects such as solar PV modules, solar PV inverters and ELP products and accessories, repayment of bank borrowing and to defray estimated listing expenses.

“To tap into the growing business opportunities, we require more skilled employees and financial resources. These two are crucial for us to secure more contracts, implement more projects concurrently and provide more maintenance services,” Chin added.

Apart from Chin, Pekat's substantial shareholders include its executive directors Tai Yee Chee and Wee Chek Aik, and Hextar Holdings Sdn Bhd. The latter is also a major shareholder of Main Market-listed Hextar Global Bhd.

Other than the design, supply and installation of solar PV systems and power plants, Pekat also supplies and installs ELP systems as well as distribute electrical products and accessories.

Its solar PV services cover the entire scope of work of a solar PV project from site assessment, design and application for regulatory approvals, procurement of components to system installation and commissioning, Pekat said. It also provides operations and maintenance services of solar PV systems.

By the edge
Tan Choe Choe

solar PV company...
got good propects
looking forward...

i smell something gorengable here

This post has been edited by sl3ge: Apr 23 2021, 08:19 PM

hope this time I become a gorenger , not a gorengee.....

It took them about 5 years to ipo, but seems very good business prospect as we move towards more green energy initiatives

Anybody can share tips what to focus when studying the prospectus?

go through it slowly, the usual sections like the risks, details of the ipo, business overview, and management discussion and analysis. for me, those are the key sections for one to dive into to know the company.

anyone know where to download the prospectus? i tried looking it in SC website but its not there.

Some notes of Pekat Group Berhad's initial prospectus.
The IPO Price is RM0.32 and P/E offer is nearly 14x, so I think still consider reasonable.

https://jaxxsblog.blogspot.com/2021/05/ipo-...oup-berhad.html

very nice prospects
looking forward to this

This year..
Many IPOs expected...
Year of the IPOs...
Prepared your 💸💵 first... And pray lady luck with u ❤️🙏💪

need to prepare bullet at least rm20k..
any idea next IPO that will offer by bank??

see how much u can afford...
not everyone has 20k

anyway...
I think next one is Nestcon Bhd... Ace Market
first or second week of June opens

Later Pekat IPO Prospectus will be released, I checked with its issuing house's employee yesterday.

Just a introduction on Pekat Group (trying to add subtitles now)
https://youtu.be/ff6Eu1RF0l0

PEKAT GROUP BERHAD

Issue Price (RM) : 0.32

Shares Offered To Malaysian Public : 32,248,600

Bursa Malaysia Board : ACE Market

Opening Date : 02 Jun 2021

Closing Date : 10 Jun 2021

Ballot Date : 14 Jun 2021

Listing : 23 Jun 2021

Solar PV and ELP company Pekat Group to raise RM44.38m from IPO

Pekat plans to use RM18mil (40.6%) raised from the initial public offering (IPO) to build a new head office and for its factory as expands its operations to tap into the fast-growing solar PV industry.

Its new head office, with a total built-up area of 114,252 sq ft, will include its showroom, central monitoring station, training centre, workshop and warehouse.

The new head office -- which will showcase its solar PV facility business, integrated management, monitoring and assessment platform -- is expected to be completed and operational by December 2023.

Out of the remaining IPO proceeds, Pekat will use RM12.70mil (28.6%) for working capital including purchasing of materials for its projects such as solar PV modules, solar PV inverters and ELP products and accessories.

https://www.thestar.com.my/business/busines...m4438m-from-ipo

This post has been edited by nexona88: Jun 2 2021, 04:31 PM

https://www.pekat.com.my/about-us/

I got error. This doesn't look good to investors. First day IPO webpage down. I wonder is it intentional or not. I may avoid because of this.

Seems the name give me a bad feeling. Just like T.setia….

True. Not a good ipo imo

Wow, good for people who can't read English.