Swift Energy Technology Berhad unveiled its initial public offering prospectus in conjunction with its listing on the ACE Market of Bursa Malaysia Securities Berhad which is scheduled on the 8 January 2025.
The company targets to raise gross proceeds of approximately RM70.06 million via the issuance of 250,200,000 new shares at an IPO price of RM0.28 per share. Based on the company's enlarged share capital of 1,000,800,000 shares at the aforesaid IPO price, the market capitalisation of the Company will be approximately RM280.22 million. The Company's shares have been classified as Shariah compliant by the Shariah Advisory Council of the Securities Commission Malaysia.
Swift Energy and its subsidiaries plans to utilise the proceeds from its IPO to fuel its growth initiatives. Approximately 40% of the proceeds will be allocated for the expansion of its fabrication facility, storage, office and the establishment of a new research and development centre in Shah Alam. This expansion aims to cater to the growing demand for the company's products and systems, enhancing its capacity to undertake multiple projects or orders concurrently.
It added that approximately 3.1% will be used for the purchase of machineries, equipment, and software, while 2.1% is earmarked for setting up a dedicated R&D centre to drive innovation. In addition, 5.8% of the proceeds will support the Group's business expansion into Indonesia, including the establishment of a wholly-owned subsidiary and an office in Jakarta. The Group will allocate 21.4% to repay its borrowings, 19.0% for working capital requirements, and the remaining 8.6% to cover its listing expenses.
Swift Energy recorded a compound annual growth rate of approximately 28.3% in the Group's revenue between financial year ended 2021 and FYE 2023. In FYE 2023, the Group achieved total revenue of RM92.43 million, as compared to RM56.12 million in FYE 2021. Additionally, the Group has significantly improved its profitability, with its profit after tax margin rising from 6.5% in FYE 2021 to 14.3% in the latest nine-month financial period ended 30 September 2024.
Mr. Tan Bin Chee, Chief Executive Officer of Swift Energy, said, "At Swift Energy, we are committed to empowering industries with innovative solutions in industrial automation and power systems. Our offerings, including process control, Ex-certified solar PV systems, and power distribution systems, support critical sectors such as oil and gas, grain products, and food manufacturing industries. For instance, we have witnessed significant growth in the demand for our Ex solar PV systems in the past few years arising from the global shift towards sustainability and renewable energy within the oil and gas industry evident in commitments as announced in the National Energy Transition Roadmap net zero emission target by Petronas in Malaysia and PTT Exploration and Production Public Company Limited's net zero greenhouse targets in Thailand. As for grain products and food manufacturing, food security remains a key factor for countries such as China and more recently the African region whereby there is a high demand for solutions which will enable the countries within the said region to strengthen their basic food supply chain.
M & A Securities is the Principal Adviser, Sponsor, Underwriter, and Placement Agent for Swift Energy's IPO exercise.
