TechStore Bhd non-executive chairman Datuk Ab Rahim Abu Bakar (fifth from left) and managing director Eugene Tan Hock Lim (fifth from right) during the company's listing on the ACE Market on Tuesday. (Photo by Shahrin Yahya/The Edge)
KUALA LUMPUR (Feb 18): TechStore Bhd (KL:TECHSTORE) gained 10% to close its maiden trading day on the ACE Market at 22 sen — up two sen from its initial public offering (IPO) price of 20 sen per share — for a market capitalisation of RM110 million.
The enterprise information technology company's stock, which opened at 25.5 sen apiece on Tuesday, rose nearly 28% to 27 sen in the early hours, but the rally lost its momentum shortly after.
It saw 262.83 million shares traded.
Investors had piled in during order-taking for TechStore's IPO, with demand from retail investors hitting nearly 100 times the number of shares set aside for them. Shares offered to eligible persons were also fully subscribed, while private placement to select investors was fully taken up as well.
TechStore mainly provides IT security and automation solutions, including command and control systems, surveillance systems such as closed-circuit televisions and fire alarms, as well as electronic payment and operating systems.
The company has an order book totalling RM135.8 million, catering to Malaysian and Singaporean clients in the transportation, hospitality, education, logistics and banking industries.
TechStore's IPO involved the issuance of 125 million new shares that raised RM25 million for the company, and an offer for sale of 25 million shares by its sole selling shareholder and executive director Mohd Fadzil Mohd Daud that grossed RM5 million for him.
Post-IPO, TechStore managing director Eugene Tan Hock Lim is the largest shareholder with a 59% stake, while Fadzil is left with 11% in the company.
TechStore plans to use RM11.5 million of the RM25 million IPO proceeds for working capital, while RM5 million will go towards partially repaying bank borrowings totalling RM33.4 million. The remainder has been earmarked for recruiting business development personnel, capital expenditure, and defraying listing expenses.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO.
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