TP TEC Holding Berhad ("TP TEC Holding" or the "Group"), a power and equipment solutions provider, made its debut on the LEAP Market of Bursa Malaysia Securities Berhad ("Bursa Securities") today, trading under the ticker symbol "TPTEC" and the stock code "03061". The stocks opened at 13 sen, which was a 3 sen or 30% premium over its IPO issue price of 10 sen. The listing marks a significant milestone in the Group's expansion strategy, enabling it to capitalise on rising demand for power solutions as investments flow into 5G connectivity, data centers and large-scale infrastructure across Malaysia.
The listing will further strengthen TP TEC Holding's footing in its operating markets, enhancing its corporate profile and contributing to its efforts to expand its customer base. It will also enable the Group to tap the capital markets for future fund-raising activities, improving its ability to pursue new growth opportunities.
“Today marks a historic milestone for TP TEC Holding as we make our debut on Bursa Malaysia’s LEAP Market,” said Lau Poh Keong, Managing Director of TP TEC Holding. “Our listing is a testament to the strength of our business model and our commitment to delivering innovative, reliable, and sustainable power and equipment solutions. It not only elevates our corporate profile but also positions us to leverage the capital markets for future growth."
“Our listing comes at a time of tremendous opportunity for the Group,” said Eric Chew, Chief Executive Officer of TP TEC Holding. “Our specialised power solutions play an important role in enabling connectivity and infrastructure development, especially in remote areas, rural areas and off grid regions, and in applications where backup power, stable power supply and minimal downtime is critical. With Malaysia’s accelerated 5G deployment and the Jalinan Digital Negara (JENDELA) project initiative, rising investments into data centers across the country, and the ongoing development of major infrastructure projects, we are positioning ourselves to meet growing demand for efficient and scalable power solutions."
Based on its Listing Reference Price of RM0.10, the Group has a market capitalisation of RM25.00 million. The listing was by way of introduction as such, nlding had raised RM2.50 million through a private subscription of shares exercise that took place in August 2024. 60% of the proceeds from this exercise will be used to expand the Group's fleet of power generators, with the remaining 40% used to defray listing expenses.
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.
According to Providence Strategic Partners Sdn Bhd ("Providence"), an independent research and consulting firm, Malaysia's power generator rental market -- a subset of the light machinery and equipment market -- grew from RM300.00 million in 2020 to RM453.60 million in 2023. Providence projects the power generator rental market to rise to RM680.00 million by 2026, fueled by growth in end-user markets such as data centers, telecommunications and construction. Additional drivers include long-term economic growth, population growth and urbanisation, as well as increased foreign and domestic investments.
