Wasco Greenergy Berhad IPO's Analysis
Wasco Greenergy Berhad
Wasco Greenergy Berhad operates in the renewable energy sector, specializing in the Engineering, Procurement, Construction, and Commissioning (EPCC) of steam energy systems, including biomass, gas-fired, and Heat Recovery Steam Generator (HRSG) systems. The company also supplies steam turbine generator systems and provides comprehensive after-sales services such as repair, maintenance, and parts sales. Additionally, Wasco Greenergy designs and manufactures a range of specialized palm oil milling equipment. The Group's principal markets are Malaysia and Indonesia, with operational headquarters and facilities located in Shah Alam, Selangor, supported by a network of service centres in both countries. The company was incorporated in Malaysia on 5 December 2023.
IPO Details
Market:
Main
Principal Adviser:
CIMB Investment Bank Berhad
Issuing House:
Tricor Investor & Issuing House (TIIH)
Shariah Status:
SC (Yes)
Listing Price:
1.0
MITI allocation?:
Yes
Closing Date:
28-Nov-2025
Balloting Date:
02-Dec-2025
Listing Date:
11-Dec-2025
Oversubscription rate:
12.11x
Average Analysts FV
:
Public Invest (1.10), TA (1.23)
iSaham IPO Score
:
Market Cap:
500.00 M
Number of Shares:
500.00 M
( info)
Median Sectors PE:
N/A
Median Peers PE:
Strategic Overview & Data Visuals
Utilisation of Proceeds
| Purpose | Amount (RM'000) | % | |
|---|---|---|---|
| Expansion | Expansion through investments, acquisitions and strategic partnership relating to the ownership and operation of biomass steam power plants (“Asset Ownership”) | 38,200 | 50.9 |
| Expansion | Expansion of our operations in Indonesia | 5,500 | 7.3 |
| Working capital | Capital expenditure for new equipment and machinery, and upgrade of our headquarters | 12,500 | 16.7 |
| Working capital | Digitalisation of our business systems and processes | 5,000 | 6.7 |
| Others | Research and development | 4,000 | 5.3 |
| Listing expenses | Estimated listing expenses | 9,800 | 13.1 |
| Total | 75,000 | 100 | |
Analyst Highlights
| Date | Analyst Highlights |
|---|---|
|
27-Nov-2025
TA |
|
|
27-Nov-2025
Public Invest |
|
Utilisation of Proceeds
Business Segments
Geographical Segments
Major Customers
Revenue by Financial Year Ended
Profit After Tax (PAT) by Financial Year Ended
Revenue by Financial Period Ended
Profit After Tax (PAT) by Financial Period Ended
SWOT Analysis
Strengths
- Market Leadership: Ranked #1 in Malaysia for steam turbine generator systems (16.8% market share) and #2 in biomass steam energy systems (14.1%), demonstrating a strong competitive position in its niche.
- Diversified Clientele: Exhibits low customer concentration risk, with its largest customer, Sime Group, contributing only 5.0% to total revenue, ensuring revenue stream stability.
- Stable Recurring Income: The after-sales services segment provides a stable and recurring revenue stream, accounting for approximately 34% of total revenue, which mitigates the cyclical nature of project-based income.
Weaknesses
- Stagnant Revenue Growth: Revenue for FY2024 experienced a decline of 4.2% year-on-year, indicating potential challenges in securing new projects or delays in project execution.
- Inflated Profitability: Reported net profit of RM39.0 million in FY2024 was significantly boosted by a one-off RM11.6 million gain from a property disposal, masking weaker underlying core profit growth.
Opportunities
- New Business Model: Strategic pivot towards an Asset Ownership model (BOO/BOOT), funded by 50.9% of IPO proceeds, aims to build a long-term, recurring utility-style income stream.
- Indonesian Expansion: Plans to expand its presence in key Indonesian industrial hubs like Jakarta, Pekanbaru, and Sulawesi to capitalize on the country's strong industrial growth and demand for renewable energy.
- Favourable Green Policies: Positioned to benefit from national policies like the National Energy Transition Roadmap (NETR) and the global push towards decarbonization, particularly in the palm oil and industrial sectors.
Threats
- Principal Supplier Risk: Heavy reliance on Shinko Ind. Ltd. as the principal supplier for its core steam turbine business creates a significant risk of disruption if the relationship is altered or terminated.
- Indonesian Regulatory Risk: With 49.4% of revenue derived from Indonesia, the company is highly exposed to potential adverse changes in the country's regulations, particularly within the palm oil industry.
- Currency Volatility: Significant revenue exposure to the Indonesian Rupiah (IDR) makes earnings susceptible to foreign exchange fluctuations against the Malaysian Ringgit.
Key Highlights
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Conclusion
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