KUALA LUMPUR (June 11): MM Computer Systems Bhd (KL:MMCS) ended its ACE Market debut slightly higher after a range-bound trading session on Thursday.
The stock opened unchanged versus its initial public offering (IPO) price of 22 sen per share, before dipping to 21.5 sen nearly immediately after the opening bell. MM Computer climbed to as high as 24 sen before closing at 22.5 sen after 125 million shares changed hands.
At the last price, market capitalisation of the information technology services firm was about RM128 million.
"We are transitioning into a publicly traded entity from a position of profound operational strength. Our immediate focus now shifts entirely to capital deployment and execution," managing director and chief executive officer Young Yoong Chang said in his speech at the listing ceremony.
Ahead of the listing, MM Computer’s IPO shares were oversubscribed more than 42 times by retail investors.
The company raised RM26.18 million from the IPO’s public issue of new shares while Young, executive director Lee Choon Weng and head of business development Quah Soo Keat together pocketed RM10.42 million from an offer for sale of their existing shares.
Based in Kuala Lumpur, MM Computer designs and implements IT infrastructure and networking systems such as servers, data centres, cloud systems, and networks. The company also offers cybersecurity systems, including firewalls, malware protection, and secure networks.
MM Computer has 105 ongoing contracts with total unrecognised revenue of RM80.83 million.
Nearly two-thirds of the funds raised from the IPO will go towards purchasing IT hardware and software. The company is also setting aside 12% of the proceeds on workforce expansion as well as for training and certification expenses.
The rest will be used to repay bank borrowings and cover listing expenses.
Malacca Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO, while SCS Global Advisory is the corporate finance adviser.
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