Wasco Greenergy Berhad

Date of Prospectus: 20 November 2025

Wasco Greenergy Berhad IPO: In-Depth Investor Analysis, Financial Highlights, Risks, and Growth Prospects

IPO Snapshot: Offer Details, Pricing, and Structure

Wasco Greenergy Berhad is launching its Initial Public Offering (IPO) on the Main Market of Bursa Malaysia Securities Berhad. The IPO is positioned to attract investors seeking exposure to Malaysia’s renewable energy sector, specifically biomass steam power generation.

• IPO Symbol: (Symbol not disclosed)
• Offer Price: RM1.00 per share (Retail Price; subject to downward adjustment to Institutional Price if lower)
• Total Offer Size: Up to 150,000,000 shares
• Number of Shares Offered: 75,000,000 new shares (Public Issue) + 75,000,000 existing shares (Offer for Sale)
• Post-IPO Outstanding Shares: 500,000,000 shares
• Expected Market Capitalisation on Listing: RM500.0 million
• Application Window: Opens 10:00 a.m., 20 November 2025; closes 5:00 p.m., 28 November 2025
• Listing Date: 11 December 2025

Placement/Issuance Breakdown:

Use of Proceeds: Growth-Focused Capital Allocation

Wasco Greenergy Berhad plans to deploy the RM75.0 million raised from the Public Issue as follows, indicating a strong growth and expansion narrative:

Growth-centric use of proceeds highlights expansion via asset ownership, regional diversification, operational upgrades, and R&D, with minimal focus on deleveraging.

Dividend Policy and Commitment

Dividend payout ratio in previous years:

• 2022: 50.6%
• 2023: 26.6%
• 2024: Not declared

No formal dividend policy or forward commitment is stated. Investors should note historical payout ratios but expect future distributions to depend on performance and board discretion.

Investor Participation, Institutional Tranches, and Book Quality

Key Tranche Allocations:

• Bumiputera Investors (via MITI): 62,500,000 shares (12.5% of enlarged capital)
• Other Malaysian Institutional and Selected Investors: 57,000,000 shares (11.4%)
• Retail/Public & Employees: 30,500,000 shares (6.1%)

No anchor investors by name are disclosed. The book is structured to ensure compliance with Bumiputera equity requirements and a balanced public float. Allocation mechanisms include a clawback and reallocation process to optimize spread across investor types. There is no stated oversubscription ratio.

Assessment of Book Quality: The inclusion of institutional tranches and regulatory oversight (including SC and MITI approval) suggests solid demand, particularly among local institutions and Bumiputera investors. The careful allocation and underwriting arrangements point to a robust first-day market performance.

Deal Parties, Underwriters, and Listing Structure

• Principal Adviser & Joint Bookrunner: CIMB Investment Bank Berhad
• Joint Bookrunners: Maybank Investment Bank Berhad, CGS International Securities Malaysia Sdn Bhd
• Managing Underwriter & Joint Underwriter: CIMB, Maybank IB
• Retail Underwriting Commission: Up to 1.25% of Retail Price for underwritten shares
• Placement Fee: Up to 1.25% (plus discretionary 0.5%) for institutional placements

No explicit stabilization or over-allotment (greenshoe) option is mentioned.

Listing-day performance is likely supported by the involvement of Malaysia’s leading investment banks and strong institutional participation, as inferred from the structured placement and underwriting agreements.

Business Model, Products, and Revenue Streams

Wasco Greenergy Berhad is a renewable energy company focused on the ownership, operation, and maintenance of biomass steam power plants. Principal revenue streams include:

• Steam energy supply to industrial users
• Potential electricity supply to the grid via joint ventures
• Engineering, procurement, construction, and maintenance services for energy infrastructure

Customer Segments: Industrial users in Malaysia and Indonesia, with expansion plans for regional growth.

Geographies: Malaysia (core market), Indonesia (expansion target)

Industry Definition: Biomass-based renewable energy, steam power generation, sustainable industrial energy solutions.

Competitive Advantages: Shariah-compliant status, strong parentage via Wasco Berhad, technical expertise, and strategic partnerships.

Financial Health and Multi-Period Performance

The company has demonstrated consistent revenue and profit growth across recent periods, with robust margins and manageable debt levels.

EPS (2024): 7.8 sen; Price-to-Earnings (P/E): 12.8x; Price-to-Book (P/B): 2.0x; Net Asset per Share (post-IPO): RM0.49

Market Position, Brand, and Management Team

Wasco Greenergy Berhad leverages its relationship with Wasco Berhad (promoter and major shareholder), which will hold 62.54% post-IPO. Tema Energy will hold 7.46% post-IPO, with lock-ups on its shares for up to three years.

Key Management: Names and roles are detailed in the prospectus, including board directors and senior management, all of whom bring sector and regional experience.

Sector Trends, Timing, and Market Environment

The IPO is timed to capture investor interest in renewables, with the company classified as Shariah-compliant by the Shariah Advisory Council. Macro and sector conditions are favorable, with increased regulatory support for sustainable energy and strong institutional demand via MITI allocations.

• Offer Period: 20 to 28 November 2025
• Price Determination Date: 1 December 2025
• Listing Date: 11 December 2025

Key Risk Factors

The prospectus discloses several material risks:

• Capital investment and cost overrun risks in biomass plant development
• No prior track record in plant ownership/operation, with risks to efficiency and regulatory compliance
• Biomass feedstock supply risk: Disruptions in supply, pricing, or quality could materially impact performance
• Share price volatility due to market, liquidity, and macro factors
• Potential dilution from future equity fundraising
• Risk of delay or termination of listing from regulatory or market events

Growth Strategy and Expansion Plans

Wasco Greenergy Berhad is focused on:

• Asset ownership model: Building, owning, and operating biomass steam power plants via BOO or BOOT frameworks
• Regional expansion into Indonesia
• Digitalisation initiatives and integration of AI and ERP systems
• R&D investment to enhance technical capabilities
• Strategic partnerships and M&A for growth and market entry

Timelines for capex, digitalisation, and regional growth range from 24 to 36 months post-listing.

Ownership Structure and Lock-Ups

Valuation and Peer Comparison

Wasco Greenergy’s:

• P/E: 12.8x (based on 2024 EPS)
• P/B: 2.0x (post-IPO)
• EPS (2024): 7.8 sen
• Net Asset per Share (post-IPO): RM0.49

No peer or sector comparison table is disclosed in the prospectus.

Research Coverage and Analyst Opinions

Frost & Sullivan provided an independent market and industry review for the IPO. No analyst price targets or recommendations are disclosed.

Listing Outlook and Subscription Recommendation

Based on disclosed financial strength, growth plans, strong institutional participation, and sector tailwinds, Wasco Greenergy Berhad’s IPO appears to offer an attractive entry into Malaysia’s renewable energy market. The solid book structure, robust deal party involvement, and compliance with regulatory requirements further support likely positive first-day trading.

Estimated First-Day Trading Range: Given the offer price of RM1.00, strong institutional and retail demand, and absence of major outstanding risks, first-day trading is likely to open at or above the offer price, with potential upside subject to market conditions.

Prospectus Access

The prospectus is available at: www.bursamalaysia.com

How to Apply

Applications can be made via participating brokers, banks, and issuing house channels. The application window is open from 10:00 a.m., 20 November 2025 to 5:00 p.m., 28 November 2025.