KUALA LUMPUR (Oct 28): Powertechnic Group Bhd (KL:POWER) closed slightly lower on its ACE Market debut on Tuesday (Oct 28), amid a weak broader market.

The stock closed at 33 sen, down two sen or 5.7% from its initial public offering (IPO) of 35 sen per share. More than 125.2 million shares changed hands, making it the third most active account on Tuesday. At the last price, the crane and hoist company had a market capitalisation of RM102.4 million.

“As we celebrate this important milestone, we extend our heartfelt gratitude to our investors, partners, and the entire Powertechnic team for their trust and support,” managing director Ivan Na Keh Chai said during a virtual press conference.

Ahead of the listing, investors had oversubscribed the retail tranche by about 46 times during the IPO. A private placement of new shares and existing shares was also fully taken up.

Based in Kulai, Johor, Powertechnic installs and maintains crane and hoist systems, including overhead, gantry, underhung and jib cranes, as well as elevated platform systems such as dock leveller, table lifters and tilting platform.

The IPO raised RM29.4 million, of which RM22.05 million went to Powertechnic for expansion and operations. Proceeds will be used to set up new product showrooms and sales offices, as capital expenditure, to repay bank borrowings, and as general working capital.

The remaining RM7.35 million accrues to Na and executive director Choo Chee Yong.

TA Securities is the IPO’s principal adviser, sponsor, underwriter and placement agent.

Read also:
Powertechnic looking to implement dividend policy post-listing
Investors snap up Powertechnic IPO shares, oversubscribing by 46 times 
Powertechnic starts taking orders from investors for ACE Market IPO at 35 sen per share 
Crane firm Powertechnic gets TA Securities to underwrite ACE Market IPO 
Overhead crane firm Powertechnic files draft prospectus for ACE Market IPO