Pekat to raise RM44.4m from IPO to expand solar PV and ELP business

by TMR / pic credit:

SOLAR Photovoltaic (PV) and Earthing and Lightning Protection (ELP) specialist Pekat Group Bhd expects to raise RM44.4 million under its proposed listing on the ACE Market of Bursa Malaysia Securities Bhd.

The Company plans to use RM18.0 million (40.6%) raised from the initial public offering (IPO) for the construction of new head office and operational facilities as it expands its operations to take advantage of the upcoming growth in the solar PV industry.

In a statement today Pekat noted its listing on the ACE Market of Bursa Securities is tentatively scheduled on 23 June 2021.

“Pekat will further utilise RM12.7 million (28.6%) for working capital requirements in particular for purchase of materials for its projects such as solar PV modules, solar PV inverters and ELP products and accessories; RM10.0 million (22.5%) to repay bank borrowings while the remaining RM3.7 million (8.3%) to be used to defray listing expenses for the IPO,” the statement noted.

Under the listing exercise, Pekat is issuing 138.7 million new shares in Pekat representing approximately 21.5% of the enlarged share capital at an issue price of RM0.32 per share.

As part of its listing exercise, the existing shareholders of the Company will also make an offer for sale of 32.2 million shares to selected investors by way of private placement.

Based on the enlarged share capital of 645.0 million shares, Pekat is expected to have a market capitalisation of RM206.4 million.