EA Technique opens below offer price as markets skid

  • Business
  • Thursday, 11 Dec 2014

KUALA LUMPUR: EA Technique (M) Bhd made a weak debut on the Main Market of Bursa Malaysia on Thursday amid a selldown in Asian markets, opening at 59 sen, which was six sen below its offer price of 65 sen.

At 9.08am, it was down 6.5 sen to 58.5 sen. Turnover was 15.03 million shares done at prices ranging from 56.5 sen to 59 sen.

The FBM KLCI fell 22.27 points or 1.26% to 1,743.25. Turnover was 84.71 million shares valued at RM37.89mil. The were 40 gainers to 256 losers.

EA Technique provides tankers for the transportation and offshore storage of oil and gas and support offshore vessels.

It raised up to RM74.1mil from its initial public offering (IPO) exercise, which involved the sale of 129 million shares at an issue price of 65 sen.

Its offer of 55.39 million issue shares to the Malaysia public was oversubscribed by 3.4 times.

EA Technique posted lower earnings in the third quarter ended Sept 30, 2014 on soaring cost of services. Its earnings were RM4.78mil, down 41.4% from the RM8.67mil a year ago as cost of services jumped to RM21.09mil from RM14.82mil. 

Revenue rose 11.3% to RM37.82mil compared with RM34.99mil a year ago. Earnings per share were 1.23 sen compared with 2.09 sen.

For the nine months ended Sept 30, 2014, its earnings slumped 79.6% to RM10.91mil from RM53.63mil in the previous corresponding period when there was a gain from the disposal of an associate company amounting to RM37.5mil.

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