EI Power Berhad

EI Power Berhad IPO: A Comprehensive Investor’s Guide to Malaysia’s Power Engineering Newcomer

EI Power Berhad is set to make its debut on the ACE Market of Bursa Malaysia Securities Berhad, presenting investors with an opportunity to tap into a rapidly growing power engineering and renewable energy player. This in-depth analysis covers every aspect of the offering, from IPO structure and financials to risk factors and growth strategies, strictly based on official disclosures.

IPO Snapshot: Offer Structure, Pricing, and Key Details

EI Power Berhad (EIP) is offering its shares to the public with the following key highlights:

• IPO Symbol: Not explicitly stated in the prospectus.
• Offer Price: RM0.48 per share
• Total Number of Shares Offered: 199,500,000 (129,500,000 new shares via Public Issue; 70,000,000 existing shares via Offer for Sale)
• Post-IPO Outstanding Shares: 700,000,000
• Total Market Capitalisation Upon Listing: RM336,000,000 (based on IPO price and enlarged share capital)
• IPO Application Period: 21 April 2026, 10:00 a.m. – 6 May 2026, 5:00 p.m.
• Listing Date: 21 May 2026

Offer Breakdown:

IPO Price-to-Earnings (PE) Multiple: 17.37x (based on FYE 2025 PAT of RM19.35 million)

Minimum Subscription: No minimum subscription required; subject to public spread requirements of Bursa Securities.

Greenshoe/Over-allotment: None.

IPO Website for Full Details: www.bursamalaysia.com

Allocation and Investor Participation

Clawback & Reallocation: Any undersubscription in Bumiputera/Restricted/Public tranches will be reallocated according to specified rules to ensure public spread.

Employee/Director/Contributor Participation: 17,500,000 shares (2.5%) with allocations by role and contribution. Key management receive 500,000 shares each under Pink Form Allocations.

Use of Proceeds: Growth-Driven Capital Deployment

Gross proceeds from Public Issue (RM62.16 million) will be deployed as follows, emphasizing expansion and operational growth:

Summary: The majority of funds are geared toward physical expansion, market entry (Thailand, Johor), and scaling of existing operations, signaling a robust growth trajectory rather than balance sheet repair.

Dividend Policy

Dividend Policy: Disclosed, but no specific payout ratio or target quantum is stated. Investors should refer to the “Dividend Policy” section in the official IPO documentation for future guidance.

Deal Parties and Underwriting Structure

Lead Adviser, Sponsor, Placement Agent, and Underwriter: M & A Securities Sdn Bhd.

Underwriting: 66,500,000 Issue Shares underwritten (Malaysian public, Pink Form, OCK shareholder tranches). Underwriting commission: 3.0% of IPO price per share underwritten.

Placement Fees: 2.5% of IPO price for shares placed out by the Placement Agent.

Stabilization/Greenshoe: No over-allotment or stabilization option.

Company Overview: Business Model, Segments, and Market Position

Business Model: EI Power Berhad is a power engineering firm specializing in the engineering, procurement, construction, and commissioning (EPCC) of:

• Mission critical power solutions (focused on industrial buildings, mainly data centres)
• Conventional power solutions (commercial, industrial, and residential buildings, especially manufacturing facilities)
• Renewable energy power solutions (solar PV systems for commercial/industrial buildings and solar farms)

Revenue Streams: Project-based, with emphasis on design, project management, supply, installation, testing, commissioning, and maintenance of diesel generation, fuel distribution, and solar PV systems.

Customer Segments: Industrial (notably data centres), commercial, and selected residential projects, with geographic expansion into Thailand and Johor planned.

Industry Classification: Power engineering and renewable energy sector.

Market Position & Competitive Strengths:

• Specialization in mission-critical power with a focus on continuity for data centres and industrial clients.
• Robust unbilled order book of RM99.89 million as at LPD, expected to be realized over 1–2 years.
• Shariah-compliant security (certified by Shariah Advisory Council, Securities Commission Malaysia).

Financial Health: Multi-Year Performance Highlights

Financial Commentary: The company has demonstrated strong topline and bottom line growth, with significant margin expansion. Revenue increased 96% between FYE 2022 and FYE 2025, while net profit grew 566%. Gross profit margins more than doubled from 16.4% to 40.1% over this period.

Ownership, Lock-Ups, and Shareholding Structure

Pre- and Post-IPO Shareholding:

Moratorium/Lock-up: All Specified Shareholders’ post-IPO shares are subject to a 6-month lock-up; 45% of their holdings remain under moratorium for an additional 6 months. Subsequently, one-third per annum of the locked shares may be sold on a straight-line basis.

Management Team & Board

Board and Key Management:

• Ir. Albert Chang – Executive Director / Chief Executive Officer (post-IPO: 2.5% direct, 51.0% indirect via Energy Ikon)
• Sharon Mak – Executive Director / Chief Operating Officer (0.1% post-IPO)
• Yong Shan Miao – Head of Finance (500,000 shares via Pink Form)
• Other Board members include Datuk Jamaludin Bin Nasir (Independent Non-Executive Chairman), Datuk Wira Ooi Chin Khoon, Datuk Low Hock Keong, Ir. Lum Youk Lee, and Khaw Bee Nee.

Key Senior Management’s Shareholdings: Each divisional head (Mission Critical, Conventional, Renewable) receives 500,000 shares post-IPO, representing 0.1% each.

Sector Trends, Timing, and Market Environment

Sector Growth: The company operates in the power engineering and renewable energy space, with strong demand trends from industrial, commercial, and data centre expansion.

IPO Timing: The offer window runs from 21 April to 6 May 2026, with listing scheduled for 21 May 2026—timed as regional power infrastructure and renewable energy investments accelerate.

Seasonality: Not specifically highlighted.

Macro Environment: The company emphasizes a supportive economic backdrop, government endorsement for Bumiputera equity participation, and Shariah compliance, which may broaden the investor base.

Recent Company Developments: Acquisition of a new HQ, expansion into Thailand, and significant capex to install energy efficiency systems.

Risk Factors

Key Risks Identified:

• License/Regulatory Risk: Revocation or non-renewal of licenses and approvals would materially affect business continuity and financials.
• Order Book Dependency: Ability to secure new projects is critical. A reduction in unbilled orders would directly impact financial results.
• Supplier Concentration: Delays or disruptions in equipment/component supply could delay projects and reduce profits.
• Other risks include project execution, sector cyclicality, and possible legal, regulatory, or contractual challenges.

Growth Strategy & Expansion Plans

Expansion Initiatives:

• Acquisition and development of a new headquarters and warehouse in Shah Alam, Selangor (29.4% of IPO proceeds)
• Entry into Thailand market (2.2% of IPO proceeds earmarked for office establishment and local hiring)
• Branch opening in Johor to tap new regional markets
• Significant hiring for project management, engineering, and QA/QC roles to support business growth (RM2.74 million for workforce expansion)
• Capex investment in building energy efficiency systems, targeting the growing green building and ESG segment

Valuation

Offer Valuation:

• PE Multiple: 17.37x (based on FYE 2025 PAT)
• Pro forma Net Asset per share (post-IPO): RM0.11
• IPO Price to Book: 4.36x
• Dilution to new investors: 77.1% (IPO price vs. pro forma NA per share)

Peer Comparison: No peer metrics or comparable IPOs are disclosed in the document.

Research & Opinions

No external research, analyst coverage, or price targets are referenced.

Listing Outlook: Inferred Strengths and Challenges

Inferred First-Day Performance: The strong growth profile, robust order book, and expansion plans, coupled with an 18.5% public float and clear moratorium on major shareholders, suggest a positive listing-day performance, subject to general market conditions. The absence of a greenshoe option means aftermarket support will be based on genuine demand. With strategic placements to institutional and Bumiputera investors, as well as a sizable working capital allocation, the IPO appears well-structured for aftermarket trading.

Subscription Recommendation: Based on disclosed financials and order book, the IPO offers exposure to a growth-stage engineering firm with improving profitability and aggressive expansion into new markets. Valuation is not low, but the sector’s growth and company’s earnings trajectory may justify a favorable initial trading range. Investors should weigh growth prospects against the risks of project dependency and supplier concentration.

How to Apply

Application Channels: Through participating financial institutions, Bursa Malaysia member organizations, and designated issuing houses. The application window is open from 21 April 2026 (10:00 a.m.) to 6 May 2026 (5:00 p.m.).

Prospectus Access: www.bursamalaysia.com

Conclusion

EI Power Berhad’s IPO brings a high-growth, margin-expanding power engineering player to the market, with clear use of proceeds for expansion and an experienced management team. The robust order book, strategic market entries, and clear governance on share lock-ups position it for a promising market debut. Investors should review the official disclosures in detail and consider applying through the specified application channels before the window closes.