LOCAL geological textiles manufacturer Emas Kiara Industries Bhd made its debut on the MSEB second board yesterday at RM1.15, for a 30 sen premium on, or 35.3% rise over, its offer price of 85 sen, with 252,700 shares changing hands.
The counter slipped to the day's low of RM1.04 before recovering to close at RM1.05 on a volume of 8,989,400 shares.
Emas Kiara specialises in the production, marketing and installation of various types of geosynthetic textiles and fabrics – reinforcement materials used in civil and structural engineering.
The company also specialises in the installation of these high-strength products in slope strengthening and soil stabilisation and treatment.
Emas Kiara chairman Tan Sri Kamaruzzaman Shariff said the initial public offer (IPO) will provide the company with funds to expand its non-construction product line this year.
“We will introduce new geosynthetic applications, mainly in packaging, automotive, agriculture and industry,'' he said.
Among the new products are industrial bulk bags, liquid and air filters, car mats, carpet backing, shade cloths, corrugated profile vertical geodrains and electric vertical geodrains.
Kamaruzzaman said the RM11.23mil IPO proceeds would be used mainly to buy and upgrade machinery and as working capital.
The company had forecast a pre-tax profit of RM10.59mil for the year ended Dec 31, 2003, and RM14mil for 2004.
Managing director Roger Wong said non-construction products and services currently accounted for 4% of Emas Kiara's annual turnover, and he expected the new products to boost the contribution from this segment to 10% by the end of this year.
He said the company spent RM2mil annually on research and development, including new product development.
Emas Kiara also plans to set up a new product line, for the manufacture of polyester fibres, in 2006. Polyester fibres are used as raw materials for the manufacture of non-woven geotextiles and geocomposites.
It had an order book worth RM60mil, which would last it over the next the 24 months, Wong said, adding that most of the jobs were secured locally.
Among the major geotextile laying projects delivered by the company were that involving the North-South Expressway Central Link; KL International Airport bulk earthwork, perimeter roads and runway crash roads; and Putrajaya-Cyberjaya link.
It plans to set up a sales office in India by 2006 to beef up its penetration into the Middle East and North Asia markets.
The company currently has agents in India, Sri Lanka, Indonesia, the Philippines, Australia, Hong Kong, Brunei, Bangladesh, Thailand, New Zealand, Taiwan, Vietnam and Singapore.
Did you find this article insightful?