KUALA LUMPUR (July 18): Oil-and-gas services firm Enproserve Group Bhd (KL:ENPRO) climbed on its first day on the ACE Market on the back of broader market gains.
Enproserve opened at 26 sen compared to its initial public offering (IPO) price of 24 sen. The stock rose to as high as 30.5 sen before closing at 26.5 sen on Friday — up 10.4% for the day. Trading volume totalled more than 75 million shares.
At the last price, the company has a market capitalisation of RM278 million.
“Our growth has been driven by a clear vision to be a reliable partner in sustaining and optimising our industrial infrastructure across the region,” Enproserve chairman Datuk Hashim Majid said in his speech during the listing ceremony on Friday.
Enproserve’s gain is adding more optimism into a market still cautious about tariff uncertainties, coming after iCents Group Holdings Bhd's (KL:ICENTS) strong debut the previous day.
Founded in 2001 in Kemaman, Terengganu, Enproserve mainly serves the oil-and-gas and petrochemical industries.
Enproserve provides plant maintenance and turnaround services; engineering, procurement, construction and commissioning (EPCC) as well as facility management services. The company also provides other related activities, including rental of equipment and vehicles, and supply of manpower.
About two-thirds of the IPO proceeds totalling RM50.4 million to the company have been allocated for capital and operational expenditure.
Enproserve intends to enhance its capacity and capabilities in plant maintenance and turnaround, EPCC, as well as investing in heavy lifting equipment for operational use as well as external rental.
The remaining RM11.65 million has been allocated for repayment of bank borrowings, while RM10.05 million will be utilised for working capital requirements.
The IPO also separately raised RM25.2 million for managing director Azman Yusof, who put up his existing shares in Enproserve for sale.
KAF Investment Bank is the principal adviser, sponsor, sole placement agent and sole underwriter for this IPO exercise.
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