KUALA LUMPUR (June 30): Liftech Group Bhd (KL:LIFTECH) slipped in its ACE Market trading debut on Tuesday amid subdued broader market conditions.
Shares of the crane manufacturer closed at 24 sen versus its initial public offering (IPO) price of 29 sen per share. The stock opened at 27.5 sen before falling to as low as 24 sen, and remained under IPO price throughout the day after more than 62 million shares changed hands.
The company's market capitalisation stood at RM76 million based on its closing price.
The weak debut comes at a time when investors at the broader market are still cautious over geopolitical developments in the Middle East. Demand during the IPO, with the shares oversubscribed about 19 times by retail investors, also failed to carry over into listing day.
Liftech manufactures industrial lifting and handling equipment such as overhead cranes, gantry cranes and goods hoists. The Puchong-based company also provides maintenance and repair services, as well as trading of crane components, accessories and related equipment.
The company raised RM23 million from the IPO, bulk of which has been earmarked to repay bank borrowings incurred to acquire operational facilities in Penang, and Sabah. The rest will be used to buy equipment and upgrade its facilities, as well as to cover working capital and listing expenses.
Liftech managing director Ng Sea Kai and executive director Eng Peng Hong together pocketed RM4.58 million from an offer for sale of their existing shares.
M&A Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.
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