11 May 2012
Syariah-compliant Bank Islam chosen as underwriter for Pestech IPO to give confidence to Bumiputera investors and hopefully attracts investment interests from pilgrim funs Lembaga Tabung Haji and Malaysian Armed Forces Fund Board (LTAT)
Pestech International Bhd hopes to attract investments from pilgrim fund Lembaga Tabung Haji and the Malaysian Armed Forces Fund Board (LTAT) for its initial public offering (IPO), its chief said.
The integrated power technology company, which is seeking a listing on the Main Market of Bursa Malaysia on May 30, has appointed Bank Islam Malaysia Bhd as the sole underwriter, adviser and placement agent for its IPO.
"An IPO by Bank Islam has to be syariah-compliant and this would give confidence to Bumiputera investors and widen up the scope of investment," said Pestech executive director and chief executive officer, Paul Lim.
Lim hopes that the IPO would also attract the Employees Provident Fund and Permodalan Nasional Bhd.
Pestech plans to raise RM12.88 million, which involves the sale of 12.88 million shares of 50 sen each at an offer price of RM1 each.
Of the 12.88 million shares, it would offer six million shares to the public, and 5.37 million units for eligible directors, employees and persons who contributed to the group. The remaining 1.5 million shares would be placed out.
The final subscription period for its shares ends on May 18.
Pestech will also offer for sale 8.59 million existing shares, with 6.46 million shares allocated by way of placement to Bumiputera investors, and 2.13 million shares via placement to identified investors.
Lim Ah Hock, its founder and executive chairman, said that RM1.8 million of the RM12.88 million raised will be utilised for product development and business expansion in existing and new markets like Laos, Myanmar and Vietnam.
Pestech designs and installs high voltage and extra high voltage sub-stations, transmission line and underground cable systems. It also manufactures propriety power systems components and equipment.
Its major local clients are Tenaga Nasional and independent power producers.
Pestech has an existing order book of RM185 million, which will last it up to 2014. For its financial year ended December 31 2011, it posted net profit of RM12 million on revenue of RM130.95 million.
Lim expects record earnings this year.
"We are looking at a profit margin of around 20 per cent per year, and revenue to grow as we expand internationally and bid for new jobs," he said.