EGP Energy offers 1 million public shares at S$0.51 each in mainboard listing
IPO will close at noon on Jul 27, with trading of shares expected to commence on Jul 29
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[SINGAPORE] Electrical infrastructure solutions and services provider EGP Energy Corporation launched its initial public offering on Tuesday (Jul 21), seeking to raise about S$30.6 million in gross proceeds ahead of its planned listing on the Singapore Exchange (SGX) mainboard.
The launch comes about three weeks after the company lodged its preliminary IPO prospectus.
The IPO comprises 18,823,500 offering shares priced at S$0.51 each. Of these, 17,823,500 shares will be offered through an international placement to institutional and other investors in Singapore, as well as selected institutional and other investors outside the US. The remaining 1,000,000 shares will be offered to the public in Singapore.
EGP Energy is set to become the fourth company to list on the SGX mainboard this year, following the listings of Foundation Healthcare, JustCo and UI Boustead Reit.
UOB and UOB Kay Hian are the joint issue managers, while UOB Kay Hian is the sole bookrunner and underwriter for the IPO.
Concurrently with the IPO, Amova Asset Management Asia, Avanda Investment Management, Ginko-AGT Global Growth Fund, Value Partners Hong Kong and Whitefield Capital Management have each entered into cornerstone subscription agreements with EGP Energy to subscribe for an aggregate of 41,176,500 new shares at the offering price. The cornerstone tranche is expected to raise about S$21 million in gross proceeds.
Including the IPO and the cornerstone tranche, EGP Energy expects to raise total gross proceeds of approximately S$30.6 million and net proceeds of about S$27.4 million.
The group intends to use the proceeds primarily to expand its product offerings and customer base, as well as strengthen its maintenance services capabilities, invest in digitalisation and intelligent technologies, and support its expansion into Malaysia and Indonesia.
EGP Energy executive chairman and CEO Frankie Fan described the listing as a “natural next step” for the group.
“The net proceeds raised will enable us to strengthen our financial position, deepen our capabilities in digitalisation and predictive maintenance, and to extend our track record beyond Singapore into new markets in the region,” he said.
The IPO will close at noon on Jul 27, with trading of EGP Energy’s shares on the SGX expected to commence on Jul 29.
Following the offering, EGP Energy will have an issued share capital of 225,450,000 shares, giving it an implied market capitalisation of around S$115 million based on the offering price.
While the group does not have a formal dividend policy, it intends to recommend and distribute dividends of up to 40 per cent of its net profit after tax attributable to shareholders for each of the financial years ending 2026 and 2027.
Increasing electricity demand
With an operating history since 1992, 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 indicated that EGP Energy has established a strong position in Singapore’s extra-high-voltage and high-voltage transmission and distribution market, particularly in the switchgear and transformer segments.
The report estimated that the group held a 24.9 per cent market share of Singapore’s extra-high-voltage and high-voltage switchgear and transformer market in 2025.
The outlook for the sector remains positive, with Singapore’s electricity demand projected to grow by between 2.8 and 4.7 per cent annually from 2025 to 2030. Growth is expected to be driven primarily by investments in advanced manufacturing, data centres and the electrification of transport.
At the same time, a significant portion of Singapore’s electricity grid infrastructure is approaching the end of its design life, prompting asset renewal programmes.
EGP Energy noted that initiatives such as the Future Grid Capabilities Roadmap, aimed at preparing the power system for greater complexity and decarbonisation, are expected to spur procurement activity across the transmission and distribution sector.
This includes the construction of new substations, transformer replacement programmes, and the integration of smart monitoring systems with existing switchgear and cable infrastructure.
“As Singapore’s electrical grid is entering a period of significant expansion driven by data centres, semiconductor manufacturing, electric vehicle infrastructure, and major projects such as Changi Airport’s Terminal 5, we expect such expansion and major projects to bring a new wave of demand for the T&D (transmission and distribution) expertise that our group specialises in,” said Fan.
In its final IPO prospectus, EGP Energy also stated that it has a “strong financial position to support its growth and operations”.
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.
As at the latest practicable date of Jun 16, EGP Energy’s order book stood at around S$282.1 million, with projects slated for progressive completion till 2031.
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.
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