EGP Energy Corporation lodges preliminary prospectus for mainboard IPO

[SINGAPORE] Electrical infrastructure solutions and service provider EGP Energy Corporation on Tuesday (Jun 30) lodged a preliminary prospectus to list on the mainboard of the Singapore Exchange (SGX).

This marks the second prospectus lodged on Tuesday, after logistics solutions provider All-Link Air & Sea filed for a mainboard listing earlier in the day.

The moves follow the mainboard listings of JustCo and UI Boustead Reit this year. Foundation Healthcare also lodged a preliminary prospectus for a mainboard listing earlier in June.

Depending on the timing of the listings, EGP Energy could become the fourth or fifth company to debut on the mainboard this year.

United Overseas Bank and UOB Kay Hian are the joint issue managers for the initial public offering. UOB Kay Hian is also acting as the sole bookrunner and underwriter.

The minimum application size is 1,000 offering shares, with additional applications to be made in multiples of 100 shares.

Separately from the IPO, cornerstone investors have agreed to subscribe for an aggregate of 41.2 million cornerstone shares at the offering price, subject to customary conditions, including the underwriting agreement remaining in force until the listing date.

EGP Energy’s controlling shareholders – Fangrowth Holdings, Frankie Fan and Ng Tian Soo – as well as substantial shareholders Growth Synergy and Ho Teck Hong, have agreed to lock-up arrangements with the joint issue managers and sole bookrunner.

The cornerstone investors will not be subject to any lock-up restrictions.

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The company intends to use the net proceeds from the IPO and the cornerstone tranche:

• To fund the expansion of product offerings and customer base, and to enhance capabilities in maintenance services, digitalisation and intelligent technologies;
• To fund the expansion of geographical reach into Malaysia and Indonesia; and
• For general corporate and working capital purposes.

“Our expansion strategy will target both the private sector and public or government-linked entities, including national grid operators such as Perusahaan Listrik Negara in Indonesia and Tenaga Nasional in Malaysia,” EGP Energy said in its prospectus.

Competitive position

EGP Energy is a key electrical infrastructure solutions and service provider for transmission and distribution projects in Singapore. Its expertise is in extra-high-voltage and high-voltage power transmission, as well as medium-voltage distribution network projects.

The company specialises in providing engineering, procurement and construction management services for transmission and distribution projects. These include project design, installation and the commissioning of electrical equipment.

An independent market research report cited in the prospectus noted that EGP Energy has established a competitive position in Singapore’s extra-high-voltage and high-voltage transmission and distribution market, particularly in the switchgear and transformer segments.

Estimates in the report showed that the company held a 24.9 per cent share of Singapore’s extra-high-voltage and high-voltage switchgear and transformer market in 2025.

EGP Energy’s revenue rose from S$16.3 million in FY2023, to S$37.9 million in FY2024 and S$38.9 million and FY2025.

Its profit after tax increased from S$4.1 million in FY2023 to S$8.5 million in FY2024 and S$10.3 million in FY2025.

The company derives a significant proportion of its revenue from a key utility customer, which accounted for about 37.2 per cent, 47.1 per cent and 80.5 per cent of revenue in FY2023, FY2024 and FY2025, respectively.

Tender-based, project-driven

As at May 31, EGP Energy’s order book with the customer stood at about S$239 million. The company expects projects awarded by the customer to continue to contribute a significant proportion of revenue.

“Our group maintains a prudent financial position, underpinned by disciplined cost management, effective working-capital management and a track record of generating operating cash flows,” it said.

However, it cautioned that its business is tender-based, project-driven and non-recurring in nature, with revenue recognition dependent on the progress and completion of projects.

As a result, revenue and profitability may fluctuate from one reporting period to another.

EGP Energy also noted that investors subscribing to the IPO will experience immediate dilution in net asset value per share, as the offering price is expected to exceed the company’s net asset value per share after completion of the offering.

It added that any future equity fundraising to support growth could result in further dilution of shareholders’ interests.

The directors intend to recommend a dividend payout ratio of up to 40 per cent of net profit for FY2026 and FY2027.