KUALA LUMPUR (June 18): Sum Technology Bhd (KL:SUM) ended its first day as a publicly-traded company with an 87.5% gain after the engineering services firm raised RM33 million from the ACE Market.
Shares of Sum Technology opened at 40 sen on Thursday versus its initial public offering (IPO) price of 28 sen per share. The stock closed at the day's high of 52.5 sen.
As at market close, Sum Technology’s market capitalisation stood at RM236.3 million.
Demand from investors was strong ahead of the listing, with the IPO heavily oversubscribed by nearly 111 times.
‘’We are encouraged by the growing opportunities in industries” such as semiconductors, data centres and electrical vehicles, which continue to drive demand for high specification and mission-critical facilities, chief executive officer Lee Thiam Hing said in his speech at the listing ceremony.
WATCH: Sum Technology opens 43% above IPO price
Based in Petaling Jaya, Sum Technology builds cleanrooms and other facilities with controlled environments as well as provides mechanical, electrical, process utilities and fire protection systems for mission-critical facilities.
The IPO consisted solely of public issue of new shares and there was no offer for sale of existing shares, meaning that original shareholders of the company were not cashing out their stakes.
More than half of the IPO proceeds have been earmarked as working capital. Sum Technology is also allocating 17% of the funds raised to expand its headquarters, 8.7% to set up an office in the Philippines, its biggest foreign market, and 7.6% on design and development activities.
The rest of the proceeds will be used to cover listing expenses.
Malacca Securities is also the IPO’s principal adviser, sponsor, and placement agent.
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