KUALA LUMPUR (Oct 16): EGH International Bhd (KL:ECOGRP) fell in its ACE Market trading debut on Friday amid relatively weak demand for the interior fit-out firm’s shares.
The stock opened at 14.5 sen compared to its initial public offering price (IPO) of 16 sen per share. The counter then fell to as low as 12 sen and was trading at 13 sen at 9.15am as more than 35 million shares exchanged hands. Market capitalisation was RM130 million based on the last price.
Managing director Datuk Weslie Lim Yuk Meng said he is “strongly confident” in the company’s upcoming performance following the recently-ended quarter.
“Share price is a temporary, short-term reflection of the market and may not represent the overall performance of the company,” he told reporters following EGH International’s listing ceremony.
Shares of EGH International, backed by Datuk Doh Jee Ming, the managing director of property developer Lagenda Properties Bhd (KL:LAGENDA), were oversubscribed fewer than three times during the IPO amid weak market conditions.
Based in Puchong, Selangor, EGH International is mainly involved in interior fit-out services and the sale of furniture, fixtures and equipment and building materials. The company has done work for hotels and resorts, healthcare facilities, educational institutions and airport lounges.
EGH International currently has 18 ongoing projects with an outstanding order book of about RM313.49 million to be progressively billed in the financial year ending May 31, 2027 (FY2027) and FY2028.
The IPO raised RM57.6 million, of which RM38.4 million went to the company and Doh pocketed the remaining RM19.2 million from an offer for sale of his existing shares in EGH International.
The company has earmarked RM14.4 million to repay borrowings and RM13 million for general working capital. EGH International is also setting aside RM5 million for construction of a new head office, warehouse and showroom while the balance of RM6 million will cover listing expenses.
Doh’s stake fell to about 25% post-IPO from 49%. EGH International is currently led by Lim and his sister Lim Seow Ni as the chief executive officer.
Berjaya Securities is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.
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