Kuala lumpur: Generator rental services provider Express Powerr Solutions (M) Bhd, which is en route to be listed on the ACE Market of Bursa Malaysia on September 24, 2025, is expected to raise RM36.0 million through its upcoming initial public offering (IPO).

According to BERNAMA News Agency, the IPO price is fixed at 20 sen per share, giving the company a market capitalisation of RM186.9 million upon listing, based on an enlarged issued share capital of 934.4 million shares. Managing director Lim Cheng Ten stated that the proceeds would enable the company to expand its fleet by at least 36 units and acquire medium- and high-voltage equipment to support this expansion over the next three years. This expansion is aimed at strengthening their ability to serve a wider customer base, particularly in the northern region.

Part of the IPO proceeds will also be used to repay borrowings taken to partially finance their new headquarters and operations yard, providing a stronger foundation for continued growth. Lim highlighted that Tenaga Nasional Bhd is expected to remain Express Powerr's largest revenue contributor, although its reliance has decreased to 60 per cent in 2024 from 95 per cent previously. He also mentioned opportunities in the oil and gas sector, particularly in offshore and remote environments, which they plan to explore further in the fourth quarter of the year.

With 27 oil and gas projects worth RM4.46 billion approved in the first nine months of 2024, demand for generator sets in exploration and drilling is set to rise. To reward shareholders, the company has adopted a dividend policy of 30-50 per cent of net profit. While the group's solar business is still in its early stages, Express Powerr aims to expand its presence within Malaysia, adding Penang and Kelantan to its current coverage.

Lim also noted that although data centres are growing rapidly in Johor, Express Powerr does not supply gensets to them as they usually purchase directly from manufacturers. However, they can provide support during emergencies. The IPO will involve the public issuance of 180 million new shares, representing 19.3 per cent of enlarged share capital, and an offer for sale of 65.4 million existing shares (7.0 per cent).

Of the 180 million new shares, 46.7 million will be offered to the public via balloting, 18.7 million allocated to eligible directors, employees and contributors, 63.2 million placed out to selected investors, and 51.4 million reserved for Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI). The 65.4 million offer shares will also be placed with Bumiputera investors approved by MITI. Applications will close on September 8, 2025, at 5 pm.

Currently, Express Powerr operates a fleet of 115 generator units, 70 per cent of which are mobile truck-mounted sets. Nearly three-quarters of the fleet comprises large generators of 500 kilovolt-ampere (kVA) and above, suited for high-demand applications. For the financial year ended December 31, 2024, the group's revenue rose to RM70.2 million from RM19.3 million in 2021, translating into a three-year compound annual growth rate of 53.7 per cent. Net profit grew at a CAGR of 43.1 per cent to RM16.6 million from RM5.7 million. Mercury Securities is the principal adviser, sponsor, sole underwriter, and placement agent for the IPO.