KUALA LUMPUR: Engineering solutions provider Kawan Renergy Bhd, en route for a listing on the ACE Market of Bursa Malaysia Securities on May 29, 2024, aims to raise RM33 million from its initial public offering (IPO).
Its managing director, Lim Thou Lai said, the group intends to use the proceeds to capitalise on the future demand for industrial process equipment.
"We plan to allocate the majority of the IPO proceeds, amounting to RM15 million (45.5 per cent) to supplement the working capital requirements of our ongoing and future co-generation plant projects in tandem with the expected growth in scale of our business,” he said during the launch of the company’s prospectus here, today.
Lim said the balance would be used to purchase additional machinery worth RM500,000 (1.5 per cent), RM2.5 million (7.6 per cent) to improve the production output of the Bercham plant, a landfill biogas power plant in Perak and RM5 million (15.1 per cent) would be invested to construct a new two-megawatt (MW) biomass power plant to enhance the power generation and sales of its electricity business.
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