KUALA LUMPUR (Oct 6): SLGC Bhd (KL:SLG) opened flat before dipping on the construction firm’s first day of listing on the ACE Market.
Shares of SLGC opened at 28 sen per share, unchanged from its initial public offering (IPO). The stock then began falling immediately to as low as 24.5 sen and was trading at 25 sen at 9.10am, as more than 34 million shares exchanged hands.
At the last price, the company based in Johor had a market capitalisation of about RM140 million.
Ahead of the listing, SLGC shares were oversubscribed by just over three times by retail investors, while a portion of the IPO was undersubscribed and had to be reallocated to other investors.
“Now that SLGC is a listed company, the priority for us is to continue strengthening the business while staying disciplined in how we grow and we intend to keep improving on how we deliver,” managing director Yong Zheng Lin said in his speech at the listing ceremony.
SLGC is a building construction contractor with G7 grade and got its start in 2009 under the name SLG Construction Sdn Bhd before being incorporated in 2024. The company also has an operations office in Taman Gembira, Kuala Lumpur.
The company is mainly involved in design and building construction services for residential and non-residential works. SLGC's customers include property developers and building owners in Malaysia.
The IPO raised about RM29.4 million for the company and another RM17.64 million for four selling shareholders that include Yong and his wife Chew Ka Yan. Liong Yang Herng, the company’s project director, and contract director Loo Chun Kok are also cashing out part of their stake in SLGC.
The company has allocated RM9.2 million of the IPO proceeds towards acquisition of construction machinery and equipment, RM7.6 million to repay bank borrowings, and RM7.5 million for general working capital. The rest will cover software upgrades and listing expenses.
M&A Securities Sdn Bhd is acting as the principal adviser, sponsor, underwriter, and placement agent for the IPO.