KUALA LUMPUR (Feb 6): Precision engineering services firm Ambest Group Bhd (KL:AMBEST) rose in its trading debut on the ACE Market on Friday, bucking the global market carnage.
The counter opened at 29 sen, four sen above its initial public offering (IPO) price, amid a sea of red in Bursa Malaysia. Ambest then climbed to as high as 35 sen before ending its maiden trading day at 34.5 sen after some 165 million shares changed hands.
At its last price, the company has a market capitalisation of RM176 million. Malaysia’s benchmark FBM KLCI eked out tiny gain while other Asian market indices were mostly still in negative territory.
The debut comes on the heels of strong interest during its IPO with applications from public investors overwhelming the number of available shares by more than 46 times.
“Becoming a public company brings higher expectations, and rightly so,” Ambest managing director Tan Beng Beng said at the listing ceremony. “We welcome this responsibility. It strengthens our focus on long-term value creation.”
Ambest raised close to RM38 million from the IPO, of which RM27.5 million will fund the company’s growth plans and operations while the remaining RM10.24 million will accrue to Tan and his co-founder Lim Eng Guan.
The company, based in Penang, mainly serves the semiconductor industry. The company also offers additional processes such as sub-modular assembly and surface finishing treatment as part of value-added services to its clients.
The company plans to partially repay bank borrowings, purchase additional machinery and fund the expansion of its Facility 42A in Bayan Lepas, Penang.
The expansion of Facility 42A involves adding an additional storey to increase production capacity, improve production flow and construct a new cleanroom. Part of the proceeds will also be used for general working capital and to defray listing-related expenses.
Malacca Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO, while Wyncorp Advisory Sdn Bhd serves as the corporate finance adviser.
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