KUALA LUMPUR (Feb 20): ES Sunlogy Bhd (KL:SUNLOGY) ended flat at 30 sen on its ACE Market debut.
The stock opened at 30.5 sen, versus its initial public offering (IPO) price of 30 sen apiece, on Thursday. The counter then fell briefly below the IPO price, before climbing to 32 sen at 9.10am, after more than 70 million shares changed hands.
At the closing price of 30 sen, ES Sunlogy was valued at RM210 million.
The muted debut of the mechanical and electrical engineering services firm comes at a time when investors are worried about escalating international trade tensions, prolonged elevated US interest rates, and other uncertainties in the market.
Demand for ES Sunlogy shares during the IPO, however, was strong.
Orders from individual public investors totalled 2.14 billion shares, which were more than 60 times the 35 million shares available for applications.
Shares set aside for eligible persons were also fully subscribed. Private placements of new and existing shares for select investors were also taken up.
ES Sunlogy specialises in high-tension and low-voltage electrical systems, extra-low-voltage systems, mechanical engineering for building services, and solar energy generation through large-scale renewable projects.
The IPO involved sale of 140 million new shares raising RM42 million for the company. ES Sunlogy has earmarked RM14.1 million of the IPO proceeds for the development and construction of the Selarong large-scale solar photovoltaic plant that could generate up to 29.99 megawatts.
The company has also allocated RM14 million for partial repayment of bank borrowings, RM9.18 million for general working capital requirements, and RM720,000 for the acquisition of enterprise resource planning software. Meanwhile, the remaining funds will cover the listing expenses.
An offer for sale of 70 million existing shares meanwhile grossed RM21 million that will go entirely to a group of selling shareholders, including ES Sunlogy managing director Khor Chuan Meng, executive director Chu Kerd Yee, and shareholder Datuk Keh Chuan Seng.
M&A Securities Sdn Bhd is the principal adviser, sponsor, sole underwriter and placement agent for the IPO.