IQ closes lower than offer price on debut

IQ Group Holdings Bhd, which made its debut on Bursa Malaysia’s main board yesterday, closed 5.6% lower, or down 10 sen, at RM1.70 on a volume of 3.3 million shares. 

The counter is the first in about a month to close lower than its offer price on the exchange. 

Since Vitrox Corp Bhd closed 19.5 sen lower at 40.5 sen on Sept 12, counters that made their debut on the exchange, such as Scicom (MSC) Bhd, ES Ceramics Technology Bhd, and TMC Life Sciences Bhd, had all closed the first day of trading higher than their offer prices. 

IQ Group opened the day’s trading flat and initially trended down to the day’s low of RM1.62 in the morning. But by noon, it had recovered to above RM1.68, before dropping and recovering again to RM1.70. 

On the lacklustre first-day performance, IQ Group managing director Graham Clancy said it reflected market conditions and was not unexpected, but he was confident of the company's future. 

He said the company intended to focus its research and development (R&D) on wireless or wire-free products for future growth.  

Graham Clancy (left) and chairman Kent Chen at IQ Group's listing press conference.

“We are increasing our expenditure on R&D and are working on ways that will allow the group’s existing products to work via the Internet in the home.  

“This will give consumers the opportunity to integrate their home security and surveillance with remote-control products,” said Clancy. 

The Penang-based company is a leading designer and manufacturer of passive infrared (PIR)-controlled sensor lighting, motion sensors, wireless video and radio frequency products.  

The company exports 99.8% of its products to Europe and Asia-Pacific countries, and has a portfolio of customers, which includes some of the world’s largest retail and wholesale companies in 15 countries. 

They include Homebase Ltd and Costco Wholesale Corp in Britain, the Hager Group in Europe, Optex Group in Japan and RAB Lighting in the US. 

Of the total RM23.4mil raised from the initial public offering, RM15mil will be used to support the company’s New Product Development programme. 

Currently, the company holds about 28% market share in Europe in its product segment.  

According to Clancy, IQ Group is the second largest supplier of wired and wireless PIR sensors and equipment in Japan, after Matsushita Electric, holding a 35% market share. 

At present, 54% of IQ Group turnover is derived from Britain, 18.7% from Europe, 15.7% from Japan and 6% from the US.  

The company has plans to expand its presence in the North American home-improvement market.  

 IQGROUP :  [Stock Watch]  [News]

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