KUALA LUMPUR (April 9): SumiSaujana Group Bhd (KL:SUMI) on Wednesday staged the worst debut on Bursa Malaysia in five years as the specialty chemicals manufacturer charged into markets shaken by US President Donald Trump’s tariffs.

The stock opened at 18 sen on ACE Market, compared to its initial public offering (IPO) price of 24 sen apiece. SumiSaujana slid to as low as 16.5 sen before ending its first day at 18 sen, down 25% from its IPO price.

SumiSaujana's Bursa debut occured on the same day that Trump's sweeping reciprocal tariffs come online. The decline was also on the back of the FBM KLCI's 2.98% drop and wide losses in Asian markets.

On a percentage basis, SumiSaujana's decline is the steepest since ACO Group Bhd (KL:ACO) fell 45% on its first trading day in March 2020, according to data compiled by The Edge, after investors were rocked by the infamous ‘Sheraton Move’ as well as the nationwide Covid-19 lockdown.

At the closing price, SumiSaujana's market capitalisation stood at RM260 million.

There had already been signs of investor wariness since March, when Trump reaffirmed the tariff threats that were the highlights of his election campaign. During the month, Bursa Malaysia welcomed six new companies on the Main Market and ACE Market, and five declined 5% to 22% below their IPO price on their listing day. Saliran Group Bhd (KL:SALIRAN) lost the most value on its debut before SumiSaujana.

Order-taking during SumiSaujana’s IPO also saw tepid investor interest, with the public tranche oversubscribed by only 1.85 times.

SumiSaujana, mainly involved in the manufacturing and trading of specialty and industrial chemicals, raised about RM74.4 million from the public issuance of 310 million new shares.

The company has earmarked 54.03% of the proceeds for the acquisition of a new warehouse and corporate office in Puncak Alam as well as 25.40% for the acquisition of its existing factory, also in Puncak Alam.

The rest will be used for capital expenditure, funds for research and development, and to defray listing expenses.

The company’s manufacturing facilities include three reactors with a total annual capacity of 10,700 tonnes and one hybrid blend-reactor tank with an annual capacity of 4,900 tonnes, supported by six blend tanks with a total annual capacity of 19,500 tonnes.

A group of shareholders, however, have pocketed RM21.6 million from an offer for sale in conjunction with the IPO, with the proceeds accruing entirely to SumiSaujana's chief executive officer Norazlam Norbi, executive deputy chairman Toh Chee Seng, chief operating officer Ramli Mohamad, as well as Atreon Holdings Sdn Bhd, held by the trio.

RHB Investment Bank is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.

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