PETALING JAYA: Pekat Group Bhd’s 32.2 million new shares for the Malaysian public under its initial public offering (IPO) was oversubscribed by 76 times.
The solar photovoltaic (PV) and earthing and lightning protection specialist received a total of 34,963 applications for 2.5 billion shares during its nine days public subscription from June 2 to June 10.
Pekat’s IPO has attracted RM794.5 million for the RM10.3 million worth of its public portion shares on sale.
The RM794.5 million subscription amount received was the highest since 2019, surpassing the previous records set by Volcano Bhd and Flexidynamic Holdings Bhd, which pulled in RM512.8 million and RM444.9 million respectively, in subscription earlier this year.
The bumiputra portion of shares was oversubscribed by 44 times, after a total of 13,168 applications for 725.5 million shares were received. Meanwhile, 21,795 applications for the remaining public portion amounting to 1.8 billion shares were received, representing an oversubscription rate of 108 times. The 16.1 million new shares for its eligible directors and employees as well as persons who have contributed to the success of Pekat had also been fully subscribed.
All the private placement and offer shares to selected investors and identified bumiputra investors approved by the Ministry of International Trade and Industry by way of private placement to selected investors have been fully placed out.
Pekat managing director Chin Soo Mau said the company aims to grow its order book for solar PV division’s contribution to the group’s revenue to between 60% and 70% in the current financial year ending Dec 31, 2021.
About two-thirds of its orderbook is from the solar PV division, which would provide a steady revenue stream for the group. Its orderbook comprised unbilled contracts amounting to RM154.9 million for both the solar PV, and the ELP divisions as at May 3.
“Pekat will tap into the RM1 billion local solar market with potential jobs this year, driven mainly from the Net Energy Metering (NEM) 3.0 programme. We have secured over 22 megawatt (mw) under the net offset virtual aggregation (Nova) programme for commercial premises under NEM 3.0, and we are applying for more, as we aim to achieve 10% share from the total 300 mw quota allocated for commercial premises,” he said in a statement.
M&A Securities Sdn Bhd corporate finance managing director Datuk Bill Tan said the strong demand for green energy-focused companies reflect the shift in investor sentiment towards environmental, social and governance companies, especially solar power.
Under the listing exercise, Pekat has issued 138.7 million new shares in Pekat representing 21.5% of the enlarged share capital at an issue price of 32 sen per share.
Of the RM44.4 million IPO proceeds raised, RM18 million will be used 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.
Pekat will further utilise RM12.7 million 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 million to repay bank borrowings while the remaining RM3.7 million to be used to defray listing expenses for the IPO.
Pekat’s listing on the ACE Market of Bursa Securities is tentatively scheduled on June 23.
