KUALA LUMPUR (May 18): Gold Li Holdings Bhd (KL:GOLDLI) fell by 19.2% in its ACE Market trading debut on Monday, underperforming amid a decline in the broader market.
The benchmark FBM KLCI ended the day 0.72% lower.
The stock opened at 12 sen compared to its initial public offering (IPO) price of 13 sen per share. It later closed at 10.5 sen, slightly above its intraday low of 10 sen, with 44.19 million shares traded.
At the last price, the Johor-based company had a market capitalisation of RM63 million.
Applications for Gold Li’s IPO shares came in just a little over three times the amount on offer as institutional investors and analysts shied away from a small-cap firm.
“Today’s debut on the ACE Market marks the pinnacle of a 27-year journey that began with a single vision in Muar,” Datuk Lee Tiau Huat, managing director of Gold Li, said in a statement on post-listing.
Gold Li mainly develops landed homes and commercial properties in Johor, while also serving as its own main contractor. The company has 13 ongoing projects and 28 planned developments with a combined gross development value of about RM855 million, alongside 47.3 acres of land bank.
The IPO raised over RM15.21 million from its public issue, with more than 70% of the proceeds earmarked to partly fund three ongoing projects and one planned development, with the balance allocated for listing expenses.
Gold Li is planning to diversify into high-rise residential development, with a 500-unit apartment project in Muar slated for launch in 2027 with an estimated gross development value of RM400 million.
“This listing provides the robust financial platform needed to unlock the value of our 47.3-acre landbank and execute our planned entry into the high-rise residential market by 2027,” Lee added..
Meanwhile, an offer for sale under the IPO generated RM4.7 million for Lee and chief operating officer Lau Siew Yu, diluting their combined stake to 73.3% mainly held through investment vehicle Setia Mega Sdn Bhd.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO.
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