KUALA LUMPUR (July 21): Stratus Global Holdings Bhd (KL:STRATUS) more than doubled in its maiden trade on the Main Market of Bursa Malaysia as investors rushed for a piece of the factory automation firm.
The Penang-based company opened at RM1.96 on Tuesday versus its initial public offering (IPO) price of 80 sen per share. Stratus Global ended the day at a new high of RM2.11 — after more than 137 million shares exchanged hands — with a market capitalisation of RM2.64 billion. This effectively added RM1.64 billion to its initial RM1 billion valuation at the IPO price, based on its share capital of 1.25 billion shares.
The stellar debuts put Stratus Global as the top performing IPO this year by percentage gain, with a 163.75% gain. It is followed by semiconductor design firm SkyeChip Bhd (KL:SKYECHIP), which recorded a listing-day gain of 151.14% as its share price surged to RM2.21 from its IPO price of 88 sen when the stock was listed on the Main Market in May this year.
The counter's red-hot performance defies cooling sentiment for global technology stocks, and comes hot on the heels of Stratus Global’s marquee IPO, which saw its shares oversubscribed by 129 times by retail investors.
Stratus Global, which specialises in automated material handling systems for the semiconductor industry, raised RM285 million through the IPO. There is no accompanying offer for sale of existing shares, meaning that existing shareholders are not cashing out their stakes in the company.
Proceeds from the IPO will be used to enlarge its production facilities, for research and development, for overseas expansion, and as working capital.
The company was founded in 1998 in the US by Ryo Narisawa, a 72-year-old Japanese who now serves as its chief executive officer. Post-IPO, he will hold a direct stake of 3.1% in Stratus Global and another 41.6% through a private vehicle Jiyuan Holding Sdn Bhd.
“Today’s listing marks a significant milestone in Stratus Global’s corporate journey,” Narisawa said in a post-listing statement. “We are grateful for the strong support shown by investors throughout our IPO process.”
UOB Kay Hian (M) Sdn Bhd is the principal adviser, underwriter and placement agent for the IPO.
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