increase font size
TP TEC Holding Berhad ("TP TEC Holding" or the "Group"), a power and equipment solutions provider, has obtained approval for the listing of its ordinary shares (“Shares”) by way of introduction on the LEAP Market of Bursa Malaysia Securities Berhad ("Bursa Securities"), setting the stage for its next phase of growth.
Bursa Securities via its letter dated 25 November 2024, has approved the admission to the Official List and the listing of and quotation for the entire issued share capital of TP TEC Holding comprising 250,000,000 Shares on the LEAP Market of Bursa Securities. Based on its listing reference price of RM0.10, TP TEC Holding is set to have a market capitalisation of RM25.00 million upon its listing on the LEAP Market.
Ahead of its proposed listing, TP TEC Holding had raised RM2.50 million through a private subscription of Shares exercise that took place in August 2024. The exercise involved the issuance of 25.00 million Shares representing 10.00% of the Group's enlarged share capital to independent private investors at a price of RM0.10 per Share. 60.00% of the proceeds from this exercise will be used to expand the Group's fleet of power generators, helping it meet demand from existing and future customers, while the remaining 40.00% will be used to defray listing expenses.
In conjunction with the proposed listing, TP TEC Holding has filed an Information Memorandum with Bursa Securities which is now publicly available on the stock exchange's website and accessible via this link:
TP TEC Holding designs, develops, owns and manages specialised power solutions for the telecommunications and construction industries, leveraging its fleet of 899 power generators designed by TP TEC Holding and deployed across Malaysia. As of October 15, 2024, TP TEC Holding has secured 9 power generator rental contracts with a total value of more than RM110.00 million with major telecommunications providers in Malaysia.
By ensuring telecommunications service providers have access to reliable and efficient power supply, TP TEC Holding plays a critical role in enabling and extending mobile and Internet connectivity across Malaysia, particularly in rural areas and off-grid regions.
Within the construction sector, TP TEC Holding delivers dynamic, scalable and cost-effective power solutions, giving project managers the flexibility to deploy power on an on-demand basis, without the need to make high up-front capital investments in dedicated power infrastructure.
TP TEC Holding also provides equipment solutions predominantly to the construction sector. This includes the provision of light machinery and equipment on a rental basis, along with associated services such as transportation, maintenance, technical support and repairs.
In addition, the Group is involved in the trading and distribution of diesel engine filtration products for vehicles and machinery used in the logistics, construction, marine, mining, energy and agriculture industries.
"Today marks a big step forward for TP TEC Holding. Our proposed listing on Bursa Securities will further strengthen our footing in the power and equipment solutions market, enhancing our corporate profile and contributing to our efforts to expand our customer base," said Lau Poh Keong, Managing Director of TP TEC Holding. "The listing will enable us to tap the capital markets for future fund-raising activities, improving our ability to pursue new growth opportunities. We also view it as a key step towards our eventual listing on Bursa Securities’ higher-tier markets."
"With our proven track record delivering reliable and efficient power solutions since 2009, we are uniquely positioned to capitalise on growing demand from the telecommunications and industrial sectors," said Eric Chew, Chief Executive Officer of TP TEC Holding. "Malaysia's emergence as a data center hub for large technology companies such as Google and Microsoft, the implementation of 5G as part of the Malaysian Digital Economy Blueprint, as well as large-scale construction and infrastructure projects across Malaysia, all serve as powerful catalysts for our growth. Moving forward, we will maintain our relentless focus on operational excellence and continue investing in the development of innovative, sustainable and ESG-friendly power solutions."
During the financial year ended 31 December 2023, TP TEC Holding recorded a 76.78% increase in revenue to RM19.87 million, driven mainly by increased demand for rental of power generators from the telecommunications industry. The higher revenue, in turn, resulted in a 136.36% increase in the Group’s profit after tax to RM1.30 million compared to the previous financial year.
The Group witnessed sustained momentum during the unaudited 9-month financial period ended 30 September 2024. Revenue for the period rose 89.18% year-on-year to RM25.88 million, contributing to a 214.29% increase in profit after tax to RM2.64 million. The Group’s performance for this period was also driven by demand for power generator rental from the telecommunications industry.
The Group is positioned to capitalise on the implementation of 5G in Malaysia under the Jalinan Digital Negara (JENDELA) initiative, in line with the Malaysian Digital Economy Blueprint’s aim to drive digitalisation across the country.
#TPTECHolding #BursaMalaysia #LEAPMarket #PowerSolutions #Telecommunications #ConstructionIndustry #MarketCapitalisation #GrowthOpportunities #MalaysianBusiness
