Express Powerr Solutions (M) Bhd

Date of Prospectus: 20 August 2025

Express Powerr Solutions (M) Bhd IPO: Growth-Driven Power Rental Play Eyes ACE Market Debut

Express Powerr Solutions (M) Bhd launches its highly anticipated IPO on the ACE Market, positioning itself as a leading generator rental service provider in Malaysia. This extensive analysis covers the full breadth of the company’s offering, financial health, growth trajectory, risk factors, and outlook for listing day—anchored on detailed prospectus disclosures. Investors and market watchers will find a deep dive into the numbers, structure, and prospects shaping this IPO.

IPO Snapshot: Key Terms, Structure, and Offer Details

Express Powerr Solutions (M) Bhd is offering its shares under the IPO symbol (not explicitly disclosed in the prospectus). The offer is structured to provide exposure to Malaysia’s growing power solutions sector with a clear focus on capital raising for expansion and operational strengthening.

Use of Proceeds: The IPO aims to raise RM36.0 million in gross proceeds, targeting a robust, growth-oriented deployment:

• Purchase of generators: RM20.5 million (56.94%)
• Repayment of bank borrowings: RM5.0 million (13.89%)
• Purchase of medium and high voltage equipment: RM4.06 million (11.27%)
• General working capital: RM2.24 million (6.23%)
• Estimated listing expenses: RM4.2 million (11.67%)

This allocation supports both expansion and balance sheet strength, signaling a growth-driven but also deleveraging strategy [[37]], [[49]].

IPO Allocation: Placement, Public, and Key Participants

Express Powerr’s IPO is structured for broad market participation, with specific tranches for public, private, and strategic investors:

No minimum subscription is required in terms of proceeds, but Bursa Malaysia’s public spread rules apply. There is no over-allotment/greenshoe option disclosed. The offering features a clawback and reallocation structure to ensure public and Bumiputera participation is maximized.

Dividend Policy: Commitment, Payout Ratio, and History

Express Powerr targets a dividend payout ratio of 30% to 50% of profit after tax (PAT) on a consolidated basis, subject to working capital needs. Dividends are dependent on subsidiary distributions to the holding company. Recent dividend payouts and declared ratios are as follows:

Dividends have been consistently paid from internally generated funds. The company has stated no intention to declare further dividends prior to listing.

Investor Participation and Book Quality

The offering structure emphasizes a wide shareholder base, with significant tranches assigned to:

• Bumiputera investors (MITI-approved): 116,806,200 shares (12.5% of enlarged capital)
• Public balloting: 46,722,600 shares (5%)
• Eligible persons (Directors, employees, contributors): 18,688,800 shares (2%)
• Selected investors (private placement): 63,193,900 shares (6.76%)

The sole selling shareholder, Lim Cheng Ten, will retain 73.74% post-listing. No anchor or cornerstone investors are explicitly named, and no oversubscription metrics are available.

Deal Parties and Offering Structure

Mercury Securities Sdn Bhd is serving as Principal Adviser, Sponsor, Sole Underwriter, and Sole Placement Agent. All underwriting is handled by Mercury Securities, with no greenshoe or stabilization facility in place. The deal features standard clawback and reallocation provisions ensuring public and Bumiputera tranches are prioritized and fully subscribed.

Company Overview: Business Model, Revenue Streams, and Market Position

Express Powerr Solutions (M) Bhd is principally engaged in the provision of generator rental services and related solutions, including:

• Rental of generators (small, medium, large)
• Ancillary equipment (distribution boards, synchronisation panels, transformers, switchgears, load banks, cables)
• Emergency, planned maintenance, and standby power rental for diverse customer requirements
• Recent expansion into solar PV solutions (since April 2024)

Customer segments include M&E companies, manufacturers, construction firms, event organizers, and government agencies. Operations are conducted through wholly-owned subsidiary Express Mission Sdn Bhd.

Financial Health: Multi-Period Performance and Key Metrics

Management Team and Board

Key management and board members:

• Dato’ Mohd Redza Shah Bin Abdul Wahid: Independent Non-Executive Chairman
• Lim Cheng Ten: Managing Director, Promoter, and Substantial Shareholder
• Rosli Bin Jonid: Non-Independent Executive Director
• Abdul Rahman Bin Adam: Independent Non-Executive Director
• Aun Siew Kuan: Independent Non-Executive Director
• Farah Shireen Binti Mohamed Said: Independent Non-Executive Director
• Kong Choon Keong: Financial Controller
• Foo Hon Wah: Maintenance Manager

Sector Trends, IPO Timing, and Market Environment

Industry: Express Powerr operates in the light machinery and equipment rental sector, which has seen normalization and demand recovery post-pandemic. The company has achieved strong revenue and profit growth as Malaysia transitioned out of endemic COVID-19 restrictions. The recent addition of solar PV solutions positions the company to capture new market trends in renewable energy.

IPO Timetable:

• Application Period: 20 August 2025 (10:00 a.m.) – 8 September 2025 (5:00 p.m.)
• Balloting: 10 September 2025
• Allotment/Transfer: 22 September 2025
• Listing Date: 24 September 2025

The company’s business and operational momentum appear to benefit from Malaysia’s return to economic normalcy, as evidenced by the strong revenue jump in FYE 2024.

Prospectus Deep Dive: Risk Factors, Growth Strategy, Ownership Structure

Key Risk Factors

• Business and Operational Risks: Includes dependency on the economic environment, competitive pressures, reliance on licenses/permits, and exposure to fluctuations in supply prices and interest rates.
• Industry Risks: Light machinery rental is competitive and cyclical, with risk from new entrants and changing customer requirements.
• Investment Risks: No assurance of liquid trading market post-listing; ACE Market listed stocks may face higher volatility.
• Other Exposures: Keyman risk (especially founder/major shareholder), regulatory compliance, and potential related-party transactions.

Risk factors are detailed in the “Risk Factors” section of the prospectus and should be carefully considered by prospective investors.

Growth Strategy

• Expansion of Generator Fleet: RM20.5 million earmarked for purchase of at least 36 new generators over 36 months
• Acquisition of Medium/High Voltage Equipment: RM4.06 million allocated for capex, supporting entry into larger-scale projects
• Deleveraging: RM5.0 million for repayment of bank borrowings, improving net gearing and interest coverage
• New Services: Recent foray into solar PV solutions opens new revenue streams and aligns with sustainability trends

Ownership and Lock-ups

• Pre-IPO: Lim Cheng Ten owns 100% (754,449,089 shares)
• Post-IPO: Lim Cheng Ten retains 73.74% (689,037,589 shares)
• Moratorium: Specified shareholder holdings are subject to lock-up/moratorium as required by Bursa Malaysia
• ESOP/Pink Form Allocations: 2% of enlarged shares (18,688,800) reserved for directors, employees, and contributors

Valuation and Peer Comparison

The IPO is priced at a P/E ratio of 11.26x (FYE 2024) and 16.05x (annualised FPE 2025). Peer comparison metrics are not disclosed in the prospectus. The pro forma post-IPO net asset per share stands at RM0.07 against the offer price of RM0.20, implying a dilution of 65% to new investors.

Listing Outlook: Is Express Powerr Worth Subscribing?

Based strictly on prospectus data, Express Powerr Solutions (M) Bhd presents as a growth-driven, profitable, and cash-generative power rental provider with a clear capex and expansion plan. Its post-pandemic sales rebound, healthy margins (gross margin above 50% in recent periods), and commitment to shareholder returns (30–50% payout ratio) add to its appeal. The offer is attractively valued compared to historical earnings, but prospective investors should note the significant dilution relative to book value and the lack of a greenshoe option. The absence of named anchor investors and disclosed oversubscription metrics means first-day trading could be more volatile, but the diversified allocation and strong fundamentals support a positive debut scenario.

Estimated First-Day Trading Strength (based solely on disclosed facts): The IPO is likely to see solid retail and institutional demand, with the offer price supported by underlying earnings and growth prospects. Listing day performance should at least match or modestly exceed the offer price, barring negative macro shocks or weak market sentiment.

How to Access the Prospectus and Apply

Prospectus Access: The document can be viewed or downloaded at www.bursamalaysia.com

How to Apply: Investors may apply through participating organisations of Bursa Securities, members of the Association of Banks in Malaysia, Malaysian Investment Banking Association, or via the Malaysian Issuing House. Applications are accepted from 20 August 2025 (10:00 a.m.) to 8 September 2025 (5:00 p.m.).