KUALA LUMPUR (Dec 5): Geohan Corp Bhd (KL:GEOHAN) ended its first trading day on the Main Market lower than its initial public offering (IPO) price.
The counter opened at 54 sen, one sen lower than its IPO price of 55 sen. It then traded between a high of 55 sen and a low of 50 sen, before settling at 54 sen at the closing bell, with some 28.1 million shares traded.
At its closing price, Geohan was valued at RM237.6 million.
“We are all set to capture the opportunities coming from Malaysia’s expanding infrastructure sector and Singapore’s booming construction industry,” Geohan managing director Lee Kim Seng said at the listing ceremony on Friday.
Investors had snapped up shares of the foundation and geotechnical specialist ahead of the listing with the IPO’s public tranche oversubscribed by nearly eight times. Shares set aside for institutional and select investors were also fully taken up.
Geohan raised RM72.6 million from the issuance of 132 million new shares. There was no offer for sale of existing shares, meaning that all proceeds raised from the IPO went to the company and existing shareholders are not cashing out stakes in the company.
More than half of the IPO proceeds will be used to expand its machinery fleet, which includes rotary boring rigs, crawler cranes and excavators, to increase operating capacity, particularly as it grows its customer base in Singapore. Another 35% has been allocated for working capital, with the remainder to defray listing expenses.
Established in 2016, Geohan specialises in foundation and geotechnical works, including piling, slope stabilisation and sub-structure services. Its portfolio includes Genting Highlands’ First World Hotel and infrastructure works for the Klang Valley Mass Rapid Transit.
Alliance Islamic Bank Bhd was the principal adviser, sole underwriter and placement agent for the IPO.