KUALA LUMPUR (July 7): RNG Tech Bhd (KL:RESTNGO) ended its first day on the ACE Market with little fanfare amid subdued demand for shares of the vending massage chair operator.
Shares of RNG Tech opened at 13 sen per share, unchanged from its initial public offering price. The stock swung between 11.5 sen and 13.5 sen before closing at 13 sen after more than 110 million shares changed hands.
Market capitalisation was RM102 million based on the last price.
The muted debut follows lukewarm reception during its IPO. The retail tranche was oversubscribed fewer than eight times while shares set aside for select investors were undersubscribed and had to be clawed back and reallocated.
RNG Tech owns and operates more than 5,600 vending massage chairs across Malaysia, Singapore, Thailand, Cambodia and Brunei under the “Rest N Go” brand. The company also has 2,400-plus chairs deployed in Vietnam and the Philippines under licensing arrangements.
The IPO raised RM16.39 million for the company’s expansion and operations. RNG Tech managing director Sophia Tan and her husband Datuk Goh Cheh Yak pocketed a combined RM10.24 million from an offer for sale of their existing shares.
Goh, who is also a co-founder of RNG Tech, stepped back from day-to-day operations to focus on expanding Gintell that sells massage chairs and fitness equipment. Post-listing, Tan’s stake will reduce from 9.4% to 0.7%, while Goh’s stake will be pared from 90.6% to 73.3%.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO.
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