KUALA LUMPUR (March 17): Adnex Group Bhd (KL:ADNEX) rose 25% in its maiden trade on the ACE Market as the interior fit-out firm rides on broader market gains.
Shares of Adnex opened at 25 sen versus its initial public offering (IPO) price of 20 sen per share. Intraday trade saw a high of 27.5 sen and a low of 22.5 sen before closing at 25 sen after 89 million shares changed hands. The company’s market value stood at RM125 million based on the last price.
WATCH: Adnex rises on ACE Market debut
The debut comes at a time when investors are still cautious over geopolitical tensions in the Middle East and renewed concerns over global trade amid US tariff uncertainties. Adnex’s IPO was oversubscribed by retail investors just a little over three times ahead of the listing.
The company raised RM18.1 million from the IPO’s public issue of new shares while managing director Adrian Kan Wai Chun and his elder brother Kan Wai Peng reaped RM7.9 million from an offer for sale of their existing shares in Adnex.
Adnex has earmarked RM6.4 million to expand its corporate office network to Penang, Johor and Sabah, alongside plans to head into regional markets such as Indonesia and the Philippines. The company will also channel part of the proceeds into upgrading and enhancing its digital infrastructure to support the expansion.
Additionally, RM3 million has been allocated for performance bonds related to existing and future projects, while RM1.2 million will be used to repay bank borrowings. The group has also set aside RM3.9 million for working capital and RM3.6 million to defray listing expenses.
Adnex, founded by the Kan brothers, provides interior fit-out services, focusing mainly on commercial and industrial properties such as corporate offices, food and beverage outlets, sales galleries and financial institutions.
Public Investment Bank is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.