Pekat’s shares surge to 93 sen after strong debut in ACE market

by SHAFIQQUL ALIFF / pic by TMR FILE

PEKAT Group Bhd’s share price jumped to 93 sen at intraday trading after making a strong debut in Bursa Malaysia opening at 85 sen, a premium of 53 sen.

The IPO offer price was 32 sen.

In a statement today, the company said it expects to benefit from the growing renewable energy sector and the recovery in the construction sector.

“We expect to benefit from the favourable government initiatives, financial incentives and tax breaks for the solar PV industry, and rebound in the construction sector, driven by the resumption of activities across all subsectors,” said Managing Director of Pekat Chin Soo Mau.

He added government policies and incentives will act as growth catalysts in the Malaysian solar PV industry at different end-user segments like residential, commercial and industrial. 

“Pekat should benefit from various solar PV programmes such as the latest rooftop solar initiative by the Energy and Natural Resources Ministry – Net Energy Metering 3.0 programme, which will be in effect from 2021 to 2023 with a quota of 500 MW allocated to further boost the uptake of solar adoption for residential, commercial and industrial users,” he added.

Earlier this year, the government set a national target of 31% RE in power capacity by 2025, and 40% in 2035, mostly driven by solar.

Various solar programmes, perks and regulations are implemented to ensure the RE sector in Malaysia continues to grow and continue to contribute to the economy.  

According to the Independent Market Research Report, the construction sector is expected to rebound by 13.4% in 2021, after experiencing a decline of 19.4% in 2020, driven by the resumption of activities across all subsectors.