West River Launches IPO Prospectus, Aims To Raise RM27.9 Mln

KUALA LUMPUR, April 10 (Bernama) – West River Bhd, a provider of mechanical and electrical (M&E) engineering services, has launched its prospectus in conjunction with its initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd scheduled on May 5, 2025. 

Group managing director Lim Yong Lai said West River’s listing exercise will involve a public issue of 71.54 million new shares (issue shares) representing 20 per cent of its enlarged share capital of 357.70 million shares, alongside an offer for sale of 35.77 million existing shares (offer share), representing 10 per cent of the enlarged share capital.

“Three years after the initial public offering (IPO) and listing, we plan to build our factory and strengthen our management.

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“Then maybe we will go overseas (expand the business) but not in these three years,” he told a press conference in conjunction with the launch of the company’s prospectus here today.

In a statement, West River, which is a mechanical and electrical (M&E) engineering services company, said that priced at 39 sen per share, the IPO values West River at a market capitalisation of RM139.50 million, with a price-to-earnings ratio of approximately 12.19 times based on its earnings per share of 3.20 sen, calculated based on its profit after tax for the financial year ended Dec 31, 2024.

The company reported revenue of RM122.74 million and profit after tax of RM11.46 million during that year.

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“Out of the RM27.90 million funds raised from the IPO, RM10 million (35.84 per cent) will be allocated for the acquisition of land and construction of a new manufacturing factory cum warehouse in the Klang Valley area,” it said.

The company elaborated that the planned facility will enhance the group’s manufacturing capacity for electrical panels and distribution boards and provide extensive storage space for M&E project-related inventories such as cables, wires and spare parts. 

West River also intends to triple its annual production capacity and improve procurement efficiency by enabling bulk purchases and direct sourcing from manufacturers.

Meanwhile, RM5.60 million (20.07 per cent) has been allocated for the repayment of borrowings, aiming to strengthen the group’s capital structure and improve gearing.

The company will also use RM7.80 million (27.96 per cent) for general working capital purposes.

The remaining RM4.50 million (16.13 per cent) will be used to cover listing-related expenses.

It said these strategic initiatives reflect West River’s commitment to scaling operations and capturing new market opportunities in Malaysia’s fast-evolving M&E engineering services sector.

According to the group, West River Bhd is now taking applications from investors for its IPO on the ACE Market of Bursa Malaysia Securities Bhd.

The application period for West River’s IPO will commence today and close on April 17, 2025, at 5pm.

M & A Securities Sdn Bhd is acting as the principal adviser, sponsor, underwriter and placement agent for the IPO.

-- BERNAMA