KUALA LUMPUR (June 3): ICT Zone Asia Bhd (KL:ICTZONE) started its first day on the ACE Market of Bursa Malaysia flat, as investors traded shares of the computer hardware and software firm cautiously in tight range.
Shares of ICT Zone opened at 20 sen, unchanged versus its initial public offering (IPO) price. The stock moved within a narrow range of 19 sen to 21 sen during early trading, before settling unchanged at 20 sen at the closing bell, after more than 38 million shares exchanged hands, valuing the company at RM132.5 million.
Interest in ICT Zone has been subdued ahead of the listing, with applications from public investors coming at just 1.89 times above the number of shares available for subscription during the IPO.
ACE Market IPOs have seen tepid demand from investors in the past three months, as global trade uncertainties sent markets on a rollercoaster ride. A large majority of new listings since March have also flopped on their day of listing.
ICT Zone is the second transfer to the ACE Market from the LEAP Market this year, after geotechnical services firm Fibromat (M) Sdn Bhd’s (KL:FIBRO) move on May 8.
Apart from trading, ICT Zone also provides leasing for computer hardware and software, as well as sell cloud solution and services.
ICT Zone’s IPO raised a total of RM30.8 million, of which RM4.2 million went to its selling shareholders — ICT Zone Holding Sdn Bhd and co-founder and non-executive chairman Datuk Seri Ng Thien Phing, both collectively controlling 72.85% of ICT Zone. Ng is also the founder of Main Market-listed SkyWorld Development Bhd (KL:SKYWLD).
Meanwhile, gross proceeds of RM26.6 million went to ICT Zone, which will go toward purchasing assets for its tech financing business, as well as sales and marketing. The rest will be used to defray listing expenses.
Malacca Securities is the principal adviser, sponsor, joint underwriter and joint placement agent for the IPO, while Kenanga Investment Bank is the joint underwriter and placement agent. SCS Global Advisory (M) Sdn Bhd is the financial adviser for the transfer listing.
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