Swift Energy Technology Berhad (“Swift Energy” or the “Company”), a local industrial automation and power systems provider unveiled its initial public offering (“IPO”) prospectus on 9 December 2024 at M World Hotel Petaling Jaya. This is in conjunction with its listing on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”) which is scheduled on the 8 January 2025.
Being well positioned for growth, Swift Energy targets to raise gross proceeds of approximately RM70.06 million via the issuance of 250,200,000 new shares at an IPO price of RM0.28 per share. Based on the company’s enlarged share capital of 1,000,800,000 shares at the aforesaid IPO price, the market capitalisation of the Company will be approximately RM280.22 million. The Company’s shares have been classified as Shariah compliant by the Shariah Advisory Council of the Securities Commission Malaysia.
Swift Energy and its subsidiaries (“Group”) plans to utilise the proceeds from its IPO to fuel its growth initiatives. Approximately 40% of the proceeds will be allocated for the expansion of its fabrication facility, storage, office and the establishment of a new research and development (“R&D”) centre in Shah Alam. This expansion aims to cater to the growing demand for the company’s products and systems, enhancing its capacity to undertake multiple projects or orders concurrently. Approximately 3.1% will be used for the purchase of machineries, equipment and software, while 2.1% is earmarked for setting up a dedicated R&D centre to drive innovation. In addition, 5.8% of the proceeds will support the Group’s business expansion into Indonesia, including the establishment of a wholly-owned subsidiary and an office in Jakarta. The Group will allocate 21.4% to repay its borrowings, 19.0% for working capital requirements, and the remaining 8.6% to cover its listing expenses.
Swift Energy demonstrated impressive financial performance, recording a compound annual growth rate (“CAGR”) of approximately 28.3% in the Group’s revenue between financial year ended (“FYE”) 2021 and FYE 2023. In FYE 2023 alone, the Group achieved total revenue of RM92.43 million, as compared to RM56.12 million in FYE 2021. Additionally, the Group has significantly improved its profitability, with its profit after tax margin rising from 6.5% in FYE 2021 to 14.3% in the latest nine-month financial period ended 30 September 2024 (“FPE 2024”).
The Group’s provision of industrial automation and power systems segment has contributed to 80.7% of its revenue in FPE 2024 of which 27.8% of this revenue was from Ex Solar PV systems followed by 25.3% from power distribution systems, 25.0% from process control systems and remaining 2.6% from other Ex systems. Notably Ex Solar PV systems have shown significant growth in the past three (3) years growing from RM7.2 million in FYE 2021 to RM24.8 million in FYE 2023. For the FPE 2024, Ex Solar PV systems recorded RM22.6 million. Regional operations in Thailand, Singapore, and China made significant revenue contributions, with exports reaching over 20 countries across Asia Pacific, the Middle East, Africa, and Europe, reinforcing the company’s reputation as a trusted provider of industrial solutions.
Mr. Tan Bin Chee, Chief Executive Officer of Swift Energy, said, “At Swift Energy, we are committed to empowering industries with innovative solutions in industrial automation and power systems. Our offerings, including process control, Ex-certified solar PV systems, and power distribution systems, support critical sectors such as oil and gas, grain products, and food manufacturing industries. For instance, we have witnessed significant growth in the demand for our Ex solar PV systems in the past few years arising from the global shift towards sustainability and renewable energy within the oil and gas industry evident in commitments as announced in the National Energy Transition Roadmap (“NETR”) net zero emission target by Petronas in Malaysia and PTT Exploration and Production Public Company Limited’s (“PTTEP”) net zero greenhouse targets in Thailand. As for grain products and food manufacturing, food security remains a key factor for countries such as China and more recently the African region whereby there is a high demand for solutions which will enable the countries within the said region to strengthen their basic food supply chain.
From our strong roots in Malaysia, we have expanded across key regional markets and our global presence reflects our resilience, growth, and ability to deliver world-class solutions tailored to diverse industries. With our new listing and the proceeds from the IPO, we are committed to long-term growth, innovation, and profitability. This IPO is a key milestone in our journey, providing us with a platform to drive our growth and create long-term value for our stakeholders.”
Danny Wong, Deputy Head, Corporate Finance, M & A Securities Sdn Bhd (“M & A Securities”) said, “Swift Energy’s remarkable 23-year journey demonstrates its resilience and innovative approach in industrial automation and power systems. With a strong international reach and distinction as Malaysia’s only IECEx-certified manufacturer for explosion-proof solar PV panels, the company is well-positioned to seize growth opportunities and drive value creation for its stakeholders.”
The public issue portion of the IPO will be made available from today and application will close on Monday, 23 December 2024 at 5.00 p.m.
M & A Securities is the Principal Adviser, Sponsor, Underwriter, and Placement Agent for Swift Energy’s IPO exercise.
ABOUT SWIFT ENERGY TECHNOLOGY BERHAD
Swift Energy Technology Berhad (“Swift Energy “) began as Swift Energy (SESB) in 2001, initially operating as a trading company focused on electrical and electronic equipment, including navigational aids systems, public address systems, and transformers. The holding company was incorporated in Malaysia in September 2022 as Swift Energy Technology Sdn Bhd and transitioned to a public limited company in April 2024.
Headquartered in Shah Alam, Malaysia, with additional branch offices in Selangor, Johor, Bangkok, Singapore, and Chongqing, Swift Energy serves approximately 550 customers across 29 geographical markets, covering Asia Pacific, the Middle East, Africa, and Europe. Swift Energy has since evolved into a comprehensive provider of industrial automation and power systems, specialising in process control, Ex solar PV, power distribution and other systems for industries such as O&G, grain products, edible oils, and food manufacturing industries. Alongside these core offerings, Swift Energy Technology supplies a wide range of power and industrial electrical products, as well as technical services for process control and power distribution systems.
Guided by a vision to become the premier electrical engineering and process control solutions provider in the Asia Pacific, Swift Energy remains committed to delivering innovative, reliable solutions with a skilled and dedicated workforce aligned to our mission.
To learn more, visit https://www.senergy.com.my/
