KUALA LUMPUR (Jan 27): One Gasmaster Holdings Bhd (KL:OGM) fell on its listing day on the ACE Market and underperformed strong gains in the broader market on Tuesday.
Shares of the gas monitoring company opened at 23.5 sen versus its initial public offering (IPO) price of 25 sen per share. The counter continued to decline and ended its debut at its intraday low of 20 sen, or 20% below the IPO price, after more than 46 million shares changed hands.
At the closing price, One Gasmaster had a market capitalisation of about RM62 million.
TA Securities flagged ahead of One Gasmaster’s listing that the company may report an earnings decline when it releases its results for 2025, due to a slowdown caused by US tariffs in early 2025.
The research house said the fair value for the stock, which has no direct peers listed on Bursa Malaysia, should be 27 sen. At that price, One Gasmaster would be worth about 13 times its forward earnings versus the IPO price that values the company at nearly 16 times its trailing earnings.
“The listing would further strengthen the group’s credibility and provide access to capital to support our expansion plans," One Gasmaster chairman Timothy Tan said during the listing ceremony.
Based in Selangor, One Gasmaster specialises in gas monitoring and piping services for customers in industries ranging from oil and gas to food and beverage. The company also provides industrial hygiene service as well as maintenance and calibration services.
The company received RM19.38 million from the public issue of new shares while current shareholders pocketed RM3.88 million from an offer for sale of existing shares.
One Gasmaster has earmarked about RM3.8 million or 19% for its business expansion into emission control solutions, which includes acquiring new instruments and hiring two new senior project engineers.
The company also allocated 25% for setting up new branch offices in Johor, Terengganu, and Penang, while another 26% was allocated for working capital for its existing operations. The rest will be used for setting up a new laboratory and to defray listing-related expenses.
"Our group has clear strategic priorities...[including] expanding its service offerings into emission control solutions, enhancing its calibration capabilities, and strengthening its nationwide presence through the establishment of new branch offices in Johor, Terengganu and Penang," Tan added.
Tan remains a major shareholder while his wife Tan Bee Sien reduced her stake from 13.6% to 5.2% under the offer for sale. She does not hold any executive role in the listed company.
Malacca Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.
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