KUALA LUMPUR (April 15): 5E Resources Holdings Bhd (KL:5ER) ended its debut on the ACE Market at 27 sen on Wednesday, slightly above its initial public offering (IPO) price of 26 sen a share.
The stock opened at 28.5 sen and rose to as high as 30 sen during the day, but pared some gains thereafter.
The counter closed its maiden trading day at 27 sen, higher by 3.85% from its IPO price, with 305 million shares traded.
At 27 sen per share, the company's market value stood at RM415.8 million.
Ahead of the listing, 5E Resources’ IPO was oversubscribed by about seven times by public investors, helping the company raise RM79.17 million from the issuance of new shares while a group of shareholders and executives pocketed RM40.04 million from the offer for sale of existing shares.
“5E Resources operates in a sector that is both critical and increasingly relevant. Schedule waste management is not optional — it is essential,” chairman Loo Sok Ching said at the listing ceremony on Wednesday.
“As industries continue to grow, so does the need for safe, compliant and sustainable waste management,” she said. “This is where 5E Resources plays an important role.”
The company holds licences covering 34 out of the 77 regulated scheduled waste categories under Malaysian environmental regulations, and has an annual processing capacity of over 280,000 tonnes.
The aim is to expand its licence coverage to at least 44 waste categories and introduce additional recovery and recycling processes, including solid recovered fuel pelletising, spent electric vehicle battery recovery, and solar panel recycling.
The efforts will be driven by its planned new facility in Perak, which is expected to lift total annual capacity to nearly one million tonnes. About 72% of the funds from the IPO’s public issue will be allocated towards the facility’s construction, as well as the acquisition of machinery and equipment.
TA Securities is the IPO’s principal adviser, sponsor, underwriter and placement agent.
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