KUALA LUMPUR: Prestariang Bhd's made a relatively poor debut on the Main Market of Bursa Malaysia when it opened half a sen lower than the issue price of 90 sen in a down market. The counter ended the day 17.8% lower at 74 sen.
However, chief executive officer Dr Abu Hasan Ismail and chairman Datuk Ramli Abbas were confident that “the market will come around” and the company would be a “(stock) to watch”.
“This is just the beginning. We will focus on managing what we can control, like profits and delivering shareholders' value,” Abu Hasan said, holding back his disappointment.
“We remain confident because of our order book amounting to RM145.29mil that will last until 2014 and the growth strategy we have in mind,” he added. The company targets to double its order book value in the next five years to RM300mil.
This order book value is as per prospectus date and has yet to include the RM80mil contract signed on Tuesday with the Higher Education Ministry (MOHE) for Prestariang's flagship industry-based certification training.
“By right, the announcement of the MOHE contract should have positively impacted Prestariang's IPO, but market performance for smaller capitalised companies is generally very sentiment-driven and sentiments have not been very encouraging,” an analyst with an investment bank said.
Prestariang's public shares were oversubscribed by 7.1 times while its private placement was oversubscribed by 7 times.
The company's major shareholders are now Abu Hasan with 41% and long-term investor Kumpulan Modal Perdana (KMP) with 10%. Ramli is also KMP chairman.
Deputy Finance Minister Datuk Dr Awang Adek Hussin said Prestariang was the sixth company under the Skim Jejak Jaya Bumiputra (SJJB) to be listed and two or three more companies were expected to list this year.
Awang also said the Finance Ministry had shortlisted 20 companies from various sectors to be offered four-year contracts under the scheme.
“The market capitalisation of SJJB companies is close to RM1bil now, with the five listed companies' amounting to RM792mil and Prestariang's market capitalisation of RM198mil. The other 20 companies mentioned would have about RM3bil of market capitalisation,” he said.
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