Kuala lumpur: Powertechnic Group Bhd, a company specializing in crane and hoist systems, is set to raise RM22.05 million through an initial public offering (IPO) in preparation for its listing on the ACE Market of Bursa Malaysia Securities Bhd on October 28, 2025. The announcement was made by Powertechnic’s managing director, Ivan Na Keh Chai, who emphasized that the IPO proceeds will be predominantly used for business expansion and operational strengthening.
According to BERNAMA News Agency, the allocation of the IPO funds includes RM4.5 million for setting up new product showrooms and sales offices, RM3.8 million for capital expenditure, RM2.8 million for repaying bank borrowings, RM6.65 million for working capital, and RM4.3 million for covering estimated listing expenses. The strategic expansion is aimed at Penang, Sarawak, Singapore, and Indonesia, with an emphasis on establishing a robust presence in these regions.
Ivan Na Keh Chai highlighted the industrial growth in various regions of Malaysia, noting the company’s early establishment in Johor Bahru, a rapidly growing industrial hub. The focus for future growth is directed towards the northern region, with Penang and Kulim showing promising potential. In the east, expansion into Kuching is bolstered by existing supply operations.
Powertechnic’s group accountant, Chin Yanjiang, provided insights into the timeline for new facilities in Penang and Sarawak, which are expected to be completed by next year, subject to any unforeseen delays. The company is also exploring overseas expansion, particularly in Indonesia, through digital marketing strategies. Singapore remains an integral part of its current market, and regional marketing efforts are expected to enhance its market reach.
Chin elaborated on the working capital allocation, stating that a significant portion will be dedicated to supplier payments and inventory expansion to support increased production demands. The focus is on ensuring sufficient inventory and material supply to meet these demands.
Looking ahead, Chin expressed optimism about Powertechnic’s growth prospects over the next five years, driven by its expanding operational footprint and continuous improvements in automation and marketing capabilities. The IPO involves issuing 63 million new shares at 35 sen each, with allocations for public subscription, eligible directors and employees, selected investors, and private placement to approved Bumiputera investors under the Ministry of Investment, Trade and Industry (MITI).
The IPO subscription is open until 5 pm on October 14, 2025, with TA Securities Holdings Bhd acting as the principal adviser, sponsor, underwriter, and placement agent for the IPO.