KUALA LUMPUR (Jan 20): Coraza Integrated Technology Bhd made a stellar debut on Bursa Malaysia's ACE Market on Thursday (Jan 20), rising to as high as 70.5 sen for a premium of 42.5 sen or 152% over the initial public offering (IPO) price of 28 sen.
The integrated engineering solution provider ended the day at 64.5 sen, for a premium of 36.5 sen or 130.36%.
It was the day's second most actively traded stock on the bourse, with 193.78 million shares changing hands. The trading volume was equivalent to 45% of its issued share capital of 428.3 million.
At 64.5 sen, Coraza had a market value of RM276.3 million.
The IPO involved a public issue of 117.79 million new shares and an offer for sale of 21.42 million existing shares.
The company offers one-stop services from design and development to product delivery with core competencies in sheet metal fabrication, precision machining and electromechanical assembly, according its website.
During a virtual press conference following the listing ceremony, managing director Lim Teik Hoe further explained that the company provides integrated engineering support to its customers, many of whom are large multinational corporations such as those from the semiconductor, instrumentation, life science and medical device industries.
He added that Coraza also has customers from the telecommunications, aerospace as well as electrical and electronics sectors.
"Over the last two years, the company has seen increasing enquiries and orders from its existing and potential customers across all market sectors, especially the semiconductor sector, both locally and from their global headquarters.
"As the backbone of all electronic products, semiconductors will be one of the most important sectors, in which technology is expected to play a much greater role than before. Right now, the industry is experiencing an unprecedented boom," Lim said in a statement issued at the listing ceremony.
Lim said investment in the aerospace sector is a strategy to enhance Coraza's capabilities in meeting aerospace engineering quality standards, which are higher than those of other industries.
He said the adoption of higher-quality standards serves as a competitive advantage for the company to engage customers from non-aerospace industries as it expands its manufacturing floor space in Penang to meet growing demand for its services.
"Looking ahead, we are positive on our prospects as we continue to strengthen our competencies and competitiveness across the core business segments we operate in," he added.