From left: Swift Energy Technology Bhd chief operating officer Chin Saw Yong, Swift chief executive officer Tan Bin Chee, M & A Securities Sdn Bhd managing director, corporate finance Datuk Bill Tan and M & A Securities deputy head, corporate finance Danny Wong.
PETALING JAYA: Industrial automation and power systems provider Swift Energy Technology Bhd has entered into an underwriting agreement with M&A Securities Sdn Bhd for its initial public offering (IPO) on the ACE Market of Bursa Malaysia.
The IPO entails a public issue of 250.20 million new ordinary shares alongside an offer for sale of 50.04 million existing ordinary shares.
Of the total 250.20 million issue shares, 50.04 million issue shares will be available to the Malaysian Public via balloting; 50.04 million shares will be allocated to eligible directors and employees of Swift Energy Group under the pink form allocations.
Meanwhile, 125.10 million issue shares are designated for private placement to selected Bumiputera investors approved by the Ministry of Investment, Trade, and Industry, while the remaining 25.02 million shares will be reserved for private placement to selected investors.
Pursuant to the underwriting agreement, M&A Securities will underwrite a total of 100.08 million shares, being the portion which will be made available for application by the Malaysian Public via balloting and for application by eligible directors and employees of Swift Energy Group under the pink form allocations.
The company plans to utilise the IPO proceeds for the expansion of its fabrication facility, storage, office and new research and development (R&D) centre by adding a mezzanine level and constructing a new three-story building, which will nearly double its operational space, accommodating increased production and project capacity.
Additionally, the company will invest in machinery, equipment and software to enhance the Group’s capacity, efficiency and productivity.
The IPO proceeds will also support the establishment of a dedicated R&D centre to drive innovation and improve product offerings.
Finally, the company aims to expand its business in Indonesia by setting up a subsidiary with an office in Jakarta to better serve its local customers, strengthen its market presence, and streamline project permits and technical support for existing installations.
Swift Energy and its subsidiaries provide industrial automation and power systems, including process control, ex solar photovoltaic and power distribution and other systems, catering mainly to the oil and gas, grain products, edible oils, food manufacturing and utilities industries.
It also distributes power and industrial electrical products, along with provision of technical services for these systems.
Based in Malaysia, with operations in Thailand, Singapore and China, the company’s reach includes South Africa, Indonesia, Ghana, Papua New Guinea, and Vietnam.
M&A Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.
