EGP Energy shares close 21.6% above IPO price on trading debut

[SINGAPORE] Shares of electrical infrastructure solutions and service provider EGP Energy Corp rose on Wednesday (Jul 29) morning on its trading debut on the Singapore Exchange (SGX).

The counter began trading at S$0.55, up 7.8 per cent from its initial public offering price of S$0.51. By market close, the counter was 21.6 per cent above its IPO price at S$0.62.

After the end of its first trading day, the group also announced its first project win, valued at around S$1.1 million, via its wholly owned subsidiary EGP Smart Energy.

Under the contract, EGP Energy will supply and install a 66-kilovolt switchgear for a battery energy storage system project in Singapore.

The customer is an engineering company based in the Republic that provides mechanical and electrical services, technical manpower supply, and equipment and spare-part sourcing to industries. The project is slated for completion by the first quarter of 2027.

With this, the group’s order book has been lifted to S$302.4 million to date.

EGP Energy is the fourth company to list on the SGX mainboard this year, following the listings of Foundation Healthcare, JustCo and UI Boustead Reit. It now has an issued share capital of nearly 225.5 million shares, with a market capitalisation of about S$115 million based on the offering price.

“This listing strengthens our financial position and gives us the platform to deepen our capabilities, grow with the demands of Singapore’s evolving electrical infrastructure, and extend our track record into new markets across the region,” said Frankie Fan, executive chairman and CEO of EGP Energy.

Expansion plan

EGP Energy provides end-to-end engineering, construction and maintenance services for major power grid projects, ranging from medium-voltage local networks to extra-high-voltage transmission lines.

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EGP Energy’s public offer of 1 million shares 17.6 times subscribed

Its IPO comprised about 18.8 million offering shares priced at S$0.51 each.

Of these, about 17.8 million shares were offered through an international placement to institutional and other investors in Singapore, as well as selected institutional and other investors outside the US. One million shares were offered to the public in Singapore.

The Singapore shares offered were 17.6 times subscribed by the close of the public offer at noon on Monday, with 651 valid applications for the offer shares.

These applicants applied for an aggregate of 17.6 million shares, with about S$9 million received in application monies, said EGP Energy.

The company expected to raise total gross proceeds of about S$30.6 million and net proceeds of about S$27.4 million through the IPO and cornerstone subscription agreements. These agreements were expected to raise about S$21 million in gross proceeds across about 41.2 million new shares.

The company said it intends to use the proceeds primarily to expand its product offerings and customer base, strengthen its maintenance services capabilities, invest in digitalisation and intelligent technologies, and support its expansion into Malaysia and Indonesia.

While EGP Energy said it does not have a defined dividend policy, it previously said it intends to recommend and distribute dividends of up to 40 per cent of its net profit after tax for 2026 and 2027.