KUALA LUMPUR (March 21): Lim Seong Hai Capital Bhd (KL:LSH) made a lacklustre debut on its first day of trading on the ACE Market, becoming the third new listing this year to close below its initial public offering (IPO) price.

The counter closed five sen or 5.68% lower at 83 sen on Friday, versus its IPO price of 88 sen.

It opened 17% lower at 73 sen, with an opening volume of 2.81 million shares, after the construction firm raised RM168.08 million as part of its transfer from the LEAP Market.

The stock was trading at 87 sen at 9.10am, after more than three million shares changed hands. At the midday break, the counter settled at 83 sen. The share price remained stable, closing at the same level with a market capitalisation of RM695.84 million.

LSH chairman Tan Sri Lim Keng Cheng, at the listing ceremony on Friday, said the company will continue to vie for facilities management jobs to generate a stable long-term income stream for the construction company.

It recently bagged a 20-year concession to operate KL Tower.

"In the future, there will be limited space for new construction in Kuala Lumpur (KL), so we need to shift into facility management," Lim added.

The 20-year concession enables the monetization of KL Tower’s potential as both a tourism and broadcasting hub, while also establishing facility management services as a sustainable source of recurring income through long-term rental and ticket sales.

LSH chief financial officer Lee Chen Wah said KL Tower will be among the company's top three business segments, with the design and construction of the KL Tower ancillary facilities, estimated at RM70.2 million, helping to boost LSH’s current construction order book.

LSH is a construction and engineering firm that specialises not only in construction but also in the supply of building materials as well as the rental of construction machinery and equipment.

The company currently has 16 ongoing construction projects worth RM1.52 billion as of Jan 31, 2025, expected to generate revenue progressively until FY2030.

For the first quarter ended Dec 31, 2024, its net profit rose 19% to RM18.5 million from RM15.5 million a year earlier, and its revenue increased 4.95% to RM96.77 million from RM92.21 million.

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