KUALA LUMPUR (April 23): AMS Advanced Material Bhd (KL:AMS) reversed early decline and the aluminium trader ended its ACE Market debut on Thursday with some gains.
Shares of AMS Advanced Material opened at 29 sen, matching its initial public offering (IPO) price. The stock fell to as low as 27.5 sen in less than 15 minutes before climbing to as high as 31.5 sen and ended the day at 30.5 sen after more than 105 million shares changed hands.
At the last price, the Penang-based company’s market capitalisation stood at about RM187 million.
The stock is riding on gains at the broader market that largely shrugged off geopolitical conflict in the Middle East. Ahead of the listing, AMS Advanced Material’s shares were oversubscribed by just a little over nine times by retail investors.
“AMS will continue to strengthen its core capabilities, deepen customer relationships, foster innovation, and provide products and solutions that exceed expectations in an increasingly competitive landscape,” managing director Keh Teng Yang said in his speech at the listing ceremony.
The IPO raised about RM32.8 million for the company and another RM13.6 million for a private vehicle controlled by Keh.
AMS Advanced Material is mainly involved in the trading of semi-finished aluminium and copper products, as well as the processing of semi-finished aluminium products. The company sells to manufacturers, contractors and fabricators in industries including aerospace and semiconductor.
More than half of the proceeds have been earmarked for expansion. AMS Advanced Material is allocating RM8.1 million to set up a manufacturing plant that will also double up as a warehouse in Penang, aimed at supporting its export-oriented semiconductor and engineering clients.
A further RM6.9 million will be channelled into expanding its aluminium architectural products segment, while RM2.5 million is earmarked for setting up a new distribution point in Kuantan, Pahang. The rest will cover bank repayments, working capital and IPO listing-related expenses.
M&A Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.
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