PESTECH to raise RM12.3m via IPO

PESTECH International Bhd, an integrated electric power technology company, aims to raise RM12.88 million via an initial public offering (IPO) of 12.88 million new ordinary shares of 50 sen each at an issue price of RM1 apiece.

In a statement today, PESTECH said the IPO would also involve an offer for sale of 8.58 million existing shares.

PESTECH said a portion of the total proceeds from the IPO would be used for product development and business expansion in existing and other developing markets.

The company today signed an underwriting agreement with Bank Islam Malaysia Bhd, the principal adviser, sole underwriter and placement agent for the listing.

Founder/executive chairman, Lim Ah Hock, said there would always be a demand for electricity and the industry was expected to grow at a healthy pace.

"PESTECH is strategically positioned in the industry as both utility firms and industrial users rely and engage our services to provide the systems and solutions for them," he said.

Lim said the group focused on the emerging and developing countries where there was a demand for the development, improvement and build up of electricity transmission and distribution assets.

"Foreign revenue contribution has been growing steadily in the last five years with approximately 51.4 per cent of its revenue for the financial year ended 2010 being contributed by foreign markets," he said. -- Bernama