KUALA LUMPUR (Feb 12): Kee Ming Group Bhd (KL:KEEMING) more than doubled in its ACE Market debut on Thursday, amid strong demand for shares of the mechanical and electrical engineering firm.
The stock opened at 79 sen versus its initial public offering (IPO) price of 38 sen per share. Kee Ming, backed by renewable energy firm Solarvest Holdings Bhd (KL:SLVEST), climbed to as high as 89 sen and closed at 87 sen after about 79 million shares changed hands.
At the last price, the company had a market capitalisation of RM283 million.
Demand was overwhelming during its IPO that was more than 50 times oversubscribed by the Malaysian public investors. Private share placements were also fully taken up by Bumiputera and institutional investors.
“The positive market reception affirms investor confidence in our engineering expertise, disciplined execution and growth strategy,” managing director Liew Kar Hoe said in a statement.
Kee Ming has also attracted the attention of Maybank Investment Bank to start covering the company with 'buy' call and target price of 79 sen.
The IPO grossed RM25.3 million for its expansions and operations, while Liew, the sole selling shareholder, pocketed a separate RM6.2 million raised from an offering of his own shares in the company.
Solarvest’s shareholding in Kee Ming, meanwhile, was diluted to 23.9% post-IPO from 30%.
Kee Ming provides engineering services, including electrical works and installations, air conditioning, ventilation systems and fire protection systems. The company also provides engineering works for energy infrastructure, such as installing solar panels and electric vehicle charging stations.
The company has earmarked the proceeds to support future projects, provide performance bonds, expand its project team through the hiring of 20 additional staff, invest in an enterprise resource planning system, and fund working capital requirements as well as listing-related expenses.
TA Securities Holdings Bhd is the principal adviser, sponsor, sole placement agent and sole underwriter, while Eco Asia Capital Advisory Sdn Bhd serves as financial adviser for the IPO.