10 sen premium for Ewein in debut


  • Business
  • Saturday, 29 Mar 2008

KUALA LUMPUR: Ewein Bhd made its debut on the Bursa Malaysia second board yesterday, opening at 80 sen for a 10 sen, or 14% premium, over its initial public offer (IPO) price of 70 sen.

Managing director Datuk Ewe Swee Keng attributed the opening price to investor confidence in the company’s fundamentals.

“We are happy with the opening price, thanks to the confidence our investors have in the company’s fundamentals,” he said after the listing ceremony.

Ewein chairman Datuk Ewe Tiong Hor striking the gong at thecompany's listing yesterday. With him are (from left) director Tan SriDatuk Wong See Wah, director Looi Kok Loon, Datuk Ewe Swee Kengand director Saffie Bakar

He said the group would strive to do better post-listing through new ventures as well as innovative products to tap the increasing demand for electronic products.

Ewein, which produces sheet metal fabricated parts for various industries, has set its sights on India for the supply of precision sheet metals for digital satellite antennas and set-top boxes later this year.

“We foresee an increasing demand for electronic products due to rising affluence of the middle-income group in that country,” he said.

He said the group had not finalised plans to set up a joint venture or a manufacturing plant and distribution centre in India, adding that the company currently supplied the products via its existing customers there.

Currently, direct exports contribute 12% to group revenue while local market and indirect exports contribute 88%.

Ewein recorded a net profit of RM10.1mil and revenue of RM104.7mil for the year ended Dec 31, 2007.

Meanwhile, Ewe said the group planned to tap the local automotive industry next year.

He said a major shareholder which owned a stake in a local automotive company, would facilitate its venture into the industry.

Ewein shares hit a high of RM1.07 and a low of 80 sen before closing at 99.5 sen for a 29.5 sen gain over its IPO price.

The counter finished among the day’s top gainers on total volume of 8.4 million shares.

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