KUALA LUMPUR (Jan 6): Clean room solutions provider Supergenics Bhd made its LEAP market debut with a 12.5% premium over its indicative initial public offering (IPO) price of 20 sen per share.
Upon market open, the counter rose by 12.5% or 2.5 sen to 22.5 sen.
A total of 70,000 Supergenics shares were traded when the market opened today.
It is the first listing for Bursa Malaysia in 2020.
Supergenics' stock code on Bursa Malaysia is 03033.
The group's IPO consists of 25 million new public shares resulting in an enlarged share capital of 93 million shares.
The indicative price for the IPO is 20 sen a share, giving it market capitalisation of RM18.6 million.
At a press conference after the group's listing ceremony, Supergenics managing director Tan Bii Chau said the group is currently in talks with other customers regionally and domestically as part of its expansion.
"In the past, our existing customers are mainly in Selangor. With the IPO, we can enhance and increase our workforce, and we can touch on geographical grounds. We are currently talking to (prospective) clients in Penang, Johor, Brunei and Indonesia," said Tan.
When asked if the company will seek to transfer its listing to the ACE or Main Market of Bursa Malaysia, Tan said it is on the cards but subject to regulatory approval.
"They very much want to plan a listing on the ACE or Main Market within the next few years. It would depend on their financial performance. Tan is a man in a hurry, so hopefully [this will be done] in two years," said Karl Fredericks, director of Thinkat Advisory Sdn Bhd, which is Supergenics' IPO adviser and placement agent.
Meanwhile, Tan said he was confident of Supergenics' earnings trajectory, as its business is resilient.
According to its information memorandum, for the financial year ended Dec 31, 2018 (FY18), the group posted a net profit of RM1.52 million compared to RM326,554 in FY17.
Meanwhile revenue increased to RM6.66 million in FY18, from RM5.24 million in FY17.
As it stands, Supergenics' orderbook amounts to RM13.5 million.
To recap, the group sought RM5 million in proceeds from the listing exercise. RM2 million is earmarked as working capital to take on higher value contracts and hire more staff to facilitate its geographic expansion.
RM1 million will be used to develop a showcase clean room and another RM1 million will be used to enhance and further develop Supergenics' Laboratory Monitoring and Control System (SGLMS). The remaining RM1 million will be used to defray listing expenses.
At 9:58am, Supergenics shares traded 15% or three sen higher at 23 sen apiece, with 80,000 shares traded.