5E Resources Holdings Berhad

Date of Prospectus: 10 March 2026

5E Resources IPO: Unlocking Growth in Malaysia’s Scheduled Waste Management Sector

IPO Snapshot: Key Offer Details, Use of Proceeds, and Strategic Focus

5E Resources Holdings Berhad is set to debut on the ACE Market of Bursa Malaysia, offering investors a pure-play exposure to the growing scheduled waste management and recycling industry in Malaysia. The company’s IPO symbol is not explicitly stated in the available information, but 5E Resources is benchmarked against several listed and private peer companies in the sector.

*FYE refers to full-year ended; FPE refers to 10-month period ended October 2025, as per the company’s reporting periods.

Use of IPO Proceeds: 5E Resources is channeling funds into growth, with capital allocated as follows:

• New Perak Facility Capex: RM110.66 million (Building construction: RM46.16 million; Machinery & equipment: RM64.5 million)
• Funding mix: IPO proceeds plus internally generated funds and/or bank borrowings (Building: RM24.0m IPO; Machinery: RM34.0m IPO)
• Expansion-centric strategy, not debt reduction.

Dividend Policy: The company does not commit to a fixed dividend payout ratio; dividends will depend on financial performance, cash flow, and capital needs. No fixed timetable or minimum payout ratio is provided.

Placement/Issuance breakdown: Not detailed in the available disclosures. Major shareholders will retain a substantial stake post-IPO.

Investor Participation & Book Quality: Demand and Institutional Interest

No anchor investors or institutional tranche allocations are named. There are no details on pre-listing disposals or sales by early shareholders. The prospectus does not reference oversubscription metrics or book-build outcomes for tranches.

Deal Parties & Structure: Underwriters, Advisers, and IPO Support

Key Deal Parties:

• Principal Adviser, Sponsor, Underwriter, Placement Agent: TA Securities
• Auditors & Reporting Accountants: Crowe Malaysia PLT
• Solicitors: David Lai & Tan
• Independent Market Research (IMR): Vital Factor Consulting Sdn Bhd

All have confirmed no conflicts of interest. The underwriter’s strength and reputation are disclosed, as is the presence of an IMR report. There is no mention of a greenshoe or stabilization mechanism.

Company Overview: Market-Leading Scheduled Waste Management Platform

5E Resources Holdings Berhad is a comprehensive scheduled waste management service provider with an integrated platform encompassing:

• Scheduled waste collection, recovery, and recycling for industrial clients
• Supply of recovered and recycled products (precious metals, metals, coolants, solvents, oils, acids, chemicals, containers, etc.)
• Trading of chemicals and other products (acids, ammonia, urea, industrial alcohol, laboratory consumables, containers)
• Chemical analysis services via an ISO/IEC 17025:2017 accredited lab

The company caters to a diverse customer base:

• Semiconductor & E&E, metal, battery, petrochemical, pharmaceutical, automotive, and F&B manufacturing sectors
• Geographical focus: Peninsular Malaysia, with facilities in Johor and a new build in Perak

Business Model & Monetization: Revenue streams are well-diversified:

• Scheduled waste management (core): Collection, recovery, and recycling of scheduled waste from industrial customers; charges based on type, volume, and complexity
• Recovered & recycled products: Sale of metals, chemicals, and other materials extracted from waste, both to existing customers and third parties
  • Accounted for 12–16% of revenue in recent periods
• Chemical trading: Sourcing and reselling of industrial chemicals and containers

Market Position & Competitive Advantages:

• Licensed by Department of Environment (DOE) for 34 SW Codes; new Perak facility expands to 44 codes, with 6 new categories
• In-house logistics: 26 company trucks, 15 third-party, and a total of 41 drivers
• ISO/IEC 17025:2017 lab accreditation—a significant trust signal for customers and regulators
• Top quartile profitability and gross margin (see peer table below)
• Strong customer base: top customer “E” contributed >10% of revenue, but overall served 502 customers in FPE 2025

Industry Overview: Robust Sector Fundamentals and Barriers to Entry

The scheduled waste management industry in Malaysia is capital-intensive, highly regulated, and features significant barriers to entry.

• Facilities require substantial investment, DOE licensing, and ongoing compliance with environmental, health & safety laws
• Peer companies include Jaring Metal Industries, MEP Enviro Technology, Hiap Huat Holdings, Pentas Flora, Tex Cycle Technology, Amita Naza, and others
• Industry is driven by industrialization, E&E and manufacturing activity, and stricter environmental regulation

Financial Health: Margins, Profitability, and Investment in Growth

*Gross profit margin (FYE 2024), as inferred from peer table [[104]]

Key trends:

• Strong, stable gross margins relative to peers
• Consistent operating cash flows, with investment focused on capacity growth (PLO 321 Facility, New Perak Facility)
• Top 5 customers contributed 32–38% of revenue; largest customer exposure is 10.5%

Valuation and Peer Comparison

Peer financials as per latest audited results available, not all peers are listed; see [[104]] for full peer list.

Management Team: Experienced Leadership and Operational Know-how

Key Executives:

• Lim Te Hua, Executive Director & CEO – industry and company leadership
• Shankar A/L Narasingam, Executive Director & COO – operational management
• Ang Khoon Poh, Head of R&D
• Lee Wah Kian, Production Manager

The board includes 7 members, 4 of whom are Independent Non-Executive Directors, and 3 are women (exceeding 30% target). The company highlights a strong governance framework and board diversity.

Trends, Timing & Environment: Sector Dynamics and Market Readiness

Sector Trends:

• Increasing industrialization and stricter environmental regulation are driving demand for compliant scheduled waste management
• Customers are seeking end-to-end providers with in-house logistics, recycling, and chemical analysis capabilities

Timing: The IPO is being launched in a period of robust sector growth and high equipment and facility utilization for the company.

• Utilization rates for key machinery generally above 50%, with several lines exceeding 70–85% in FPE 2025
• New Perak Facility will significantly expand processing capacity and SW Code coverage

Macro Environment: No adverse macroeconomic headwinds disclosed. Market environment is described as positive for scheduled waste management, with demand from E&E, chemicals, and manufacturing.

Recent Developments and Expansion Plans

Major investments underway:

• PLO 321 Facility, Johor: For additional capacity and operational flexibility
• New Perak Facility: RM110.66 million capex, state-of-the-art equipment, and expanded SW Code licensing
• New recovery/recycling methods (SRF pelletising, spent EV battery recovery, solar PV panel recovery, advanced acid/alkali recycling)

Commissioning of these facilities positions 5E for significant growth in market share and service offering.

Risk Factors: Key Exposures and Mitigants

• Regulatory / Licensing Risk: Scheduled waste management requires DOE licenses by SW Code and for each truck/driver. Failure to renew licenses or regulatory non-compliance could halt operations. Company was fined RM67,000 in FYE 2022 for non-compliance; no other material penalties since.
• Customer Concentration: Top customer contributed over 10% of revenue in recent years; top 5 accounted for 32–38%. Business is order-based with no long-term contracts, so revenue can fluctuate.
• Monthly Waste Quota: Licensed by maximum monthly collection by SW Code; can constrain growth if demand surges.
• Workplace Safety: Fatal accident in September 2025 (2 deaths, 1 injury); company invested RM0.39 million in safety upgrades. No further material reputational or operational impact to date.
• Licenses in Employee Names: Some chemical handling permits are tied to individual staff; loss of key staff could temporarily disrupt operations.
• Supplier Dependence: Top 5 suppliers account for a significant share of purchases (29–46% in recent periods).
• Expansion Risk: PLO 321 and New Perak Facility require >RM198 million in capex; any delay or cost overrun will affect returns.
• Dividend Uncertainty: No fixed commitment to dividends; future payments depend on company performance and strategy.
• Potential Dilution: Future equity issuance for capex or expansion may dilute existing shareholders.

Growth Strategy: Scale, Innovation, and Market Penetration

5E Resources is pursuing an ambitious growth agenda:

• Commissioning the New Perak Facility and PLO 321 Facility to expand capacity, add new SW Codes, and serve more industrial customers
• R&D investment (0.8–1.1% of revenue) in advanced recycling (SRF pellets, EV battery recycling, solar PV panels)
• Proactive marketing, upselling to existing customers, direct negotiation for tenders, and participation in industry events
• Ongoing staff training, ESG initiatives, and digitalization to improve compliance and operational efficiency

Ownership & Lock-ups: Share Structure and Promoter Holdings

Post-IPO Shareholding: Promoters and substantial shareholders will collectively hold approximately 70.23% of issued shares. No ESOPs or employee allocations are specified. There is no information provided on lock-up periods or moratoriums.

Listing Outlook: Market Debut Prospects Based on Disclosed Facts

5E Resources Holdings Berhad offers investors a high-margin, growth-focused exposure to Malaysia’s scheduled waste management sector. The company’s expansion into Perak, advanced recycling technologies, and robust financials position it as a top performer among peers. Risks include regulatory compliance, customer concentration, and execution of new facilities, but the company’s track record, multi-year profitability, and high utilization rates suggest resilience.

Based strictly on the facts disclosed, investors can expect:

• Strong first-day performance supported by sector-leading margins, growth capex, and broad industrial demand
• Potential for share price appreciation if expansion plans are executed as outlined
• Dividend potential in the future, but no near-term commitment
• Exposure to sector tailwinds (regulation, E&E manufacturing, environmental focus)

The IPO appears compelling for growth-oriented investors seeking exposure to Malaysia’s environmental and industrial services sector.

Prospectus Access

For more information or to access the full prospectus, visit: www.bursamalaysia.com