Engineering solutions provider, Kawan Renergy Berhad (Kawan Renergy), successfully made its debut on the ACE Market of Bursa Malaysia Securities Berhad (Bursa Securities).
Kawan Renergy’s Managing Director, Ir. Lim Thou Lai, expressed gratitude for the overwhelming support from investors, stating, “Today marks a momentous occasion for Kawan Renergy. This successful initial public offering stands as a testament to the dedication and hard work of the entire Kawan Renergy team.”
Lim highlighted the company’s vision aligned with Malaysia’s national energy transition ambitions, aiming for net-zero emissions by 2050. He emphasized the potential in renewable energy and co-generation plants, citing the company’s proven track record in energy efficiency projects.
The additional capital raised from the IPO, totaling RM33.0 million, will fuel growth strategies and capitalize on opportunities within the industrial process equipment industry. The company’s expansion aligns with Malaysia’s economic growth, fueled by increasing foreign direct investment (FDI) in key industries.
Financially, Kawan Renergy reported robust results for the first quarter ended 31 January 2024 (“1QFY24”), with revenue of RM19.9 million and net profit of RM4.2 million, achieving a net profit margin of 21.1%. Over half of the revenue came from the Industrial Process Equipment segment.
As of 31 January 2024, the Group’s cash and short-term deposits stood at RM50.2 million, with total borrowings of RM10.5 million. The IPO proceeds have been allocated for working capital, investment in a new biomass power plant, improving plant output, machinery purchase, and repayment of bank borrowings.
M & A Securities Sdn Bhd served as the Principal Adviser, Sponsor, Underwriter, and Placement Agent for the IPO exercise.
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