KUALA LUMPUR (July 29): Oxford Innotech Bhd (KL:OXB) surged in its trading debut on Tuesday after the Penang-based precision engineering firm’s initial share sale raised RM56.1 million.

The stock opened at 36 sen, up seven sen or 24.14% over the initial public offering (IPO) price of 29 sen apiece. Oxford Innotech climbed to an intraday high of 40 sen and later closed at 38.5 sen, still up 9.5 sen or 32.76% from its IPO price. The counter saw 101.55 million shares change hands, making it the third most active stock on Bursa Malaysia on Tuesday. 

The gain follows strong showings of recent IPOs as investor sentiment recovers from a series of flops on the ACE Market. Ahead of its listing, demand from the public during its IPO exceeded the amount of shares available for subscription by more than three times.

Oxford Innotech, which manufactures components for the semiconductor, electrical and electronics, automotive, and modular building industries, raised RM41.6 million from the issuance of new shares.

Proceeds will primarily fund Oxford Innotech’s expansion plans, including RM23.1 million for the construction of a new factory space in Penang and RM11.2 million for the purchase and refinancing of new machinery.

Currently, the group operates 85,782 square feet of manufacturing space. It plans to add another 39,392 square feet by the third quarter of 2025.

A further 67,722 square feet of capacity, to be funded from the IPO proceeds, is slated for completion in 2027. Once fully operational, the total manufacturing footprint will more than double to 192,000 square feet.

The IPO also raised RM14.5 million from an offer for sale of existing shares for the company’s key shareholders, including managing director Ng Thean Gin, his spouse and executive director Lee Lai Chan, as well as executive directors Teh Teng Wah and Oh Yen San.

Post-listing, Ng and Lee’s combined stake will be diluted to 42.35%, Teh’s to 13%, and Oh’s to 7.32%.

Malacca Securities Sdn Bhd is the principal adviser, sponsor, underwriter and joint placement agent, with Kenanga Investment Bank Bhd for the IPO. Wyncorp Advisory Sdn Bhd acted as the corporate finance adviser.

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