IPO: PESTECH INTERNATIONAL BERHAD (PESTECH)

On 10 May 2012, the prospectus for PESTECH International Berhad (“PESTECH”) was launched in conjunction with its initial public offering (“IPO”) and listing on the Main Market of Bursa Malaysia Securities Berhad.

The closing date for this IPO is on 18 May 2012 at 5.00pm or such further period or periods as the Directors of PESTECH and the Offerors, together with the Sole Underwriter, in the absolute discretion may mutually decide.

Please note that the prospectus is only for distribution in Malaysia and the invitation to apply for PESTECH’s IPO is only for CDS account holders who are in Malaysia and subject to the conditions stated in the prospectus. No action has been taken to permit a public offering outside of Malaysia in connection with the IPO and hence offering in other jurisdictions may be restricted or prohibited.

INITIAL PUBLIC OFFERING IN CONJUNCTION WITH THE LISTING OF PESTECH INTERNATIONAL BERHAD (‘‘PESTECH’’) ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD COMPRISING:-

(I) PUBLIC ISSUE OF 12,880,000 NEW ORDINARY SHARES OF RM0.50 EACH (“SHARES”) IN THE FOLLOWING MANNER:-

• 6,000,000 NEW SHARES AVAILABLE FOR APPLICATION BY THE MALAYSIAN PUBLIC;

• 5,367,000 NEW SHARES AVAILABLE FOR APPLICATION BY THE ELIGIBLE DIRECTORS, EMPLOYEES AND PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF PESTECH, ITS SUBSIDIARY COMPANIES AND JOINTLY-CONTROLLED ENTITY;

• 1,513,000 NEW SHARES BY WAY OF PLACEMENT TO IDENTIFIED INVESTORS;

AND

(II) OFFER FOR SALE OF 8,588,000 EXISTING SHARES IN THE FOLLOWING MANNER:-

• 6,456,400 EXISTING SHARES BY WAY OF PLACEMENT TO BUMIPUTERA INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY;

• 2,131,600 EXISTING SHARES BY WAY OF PLACEMENT TO IDENTIFIED INVESTORS

AT AN ISSUE/OFFER PRICE OF RM1.00 PER SHARE, PAYABLE IN FULL UPON APPLICATION

A copy of the electronic prospectus may be obtained at http://www.bursamalaysia.com/website/bm/listed_companies/company_announcements/ipos/index.jsp.


RM1.8 million of the RM12.88 million raised will be utilised for product development and business expansion in existing and new markets like Laos, Myanmar and Vietnam.

From the RM1.8mil, RM1.4mil will channelled into the development of high-value products, while RM400,000 will be used for existing market expansion.

Another RM6mil raised from the IPO will be used to pay off its existing debts from project financing to bring the gearing level down from 0.46 to 0.24 after the IPO.

Pestech designs and installs high voltage and extra high voltage sub-stations, transmission line and underground cable systems. It also manufactures propriety power systems components and equipment.

Its major local clients are Tenaga Nasional and independent power producers.
Pestech considers TNB a key domestic client accounting for 16% of the group's revenue. The company has 2.4% market share in Peninsular Malaysia and Sabah.

Pestech has an existing order book of RM185 million, which will last it up to 2014. For its financial year ended December 31 2011, it posted net profit of RM12 million on revenue of RM130.95 million.