KUALA LUMPUR: i-Stone Group Bhd, which made its debut on the Ace Market of Bursa Malaysia yesterday, surged nine sen or 56.25% to 25 sen in morning trade.
Shares of the manufacturing automation provider were the most actively traded on the stock exchange with 406.49 million units changing hands. It closed 8.5 sen higher to 24.5 sen.
The retail tranche of the offering was 61.07 million shares at a price of 16 sen per share, which was 11.56 times oversubscribed.
Of the total proceeds of RM39.09mil raised from the listing, RM6.8mil will be used for the construction of a new design and development centre and RM4.2mil will be utilised for process and product development.
“The company plans to design, develop and manufacture standard modules which can be used for its range of specialised automation machines to reduce manufacturing lead time.
“It also intends to develop new products and introduce new features into its machines to meet customers’ increasing demand for higher productivity and efficiency of their manufacturing operations,” said managing director Rebecca Tee in a statement.
The remainder of the proceeds will go towards repaying borrowings, capital expenditure and working capital.
The group said the manufacturing sales value of specialised machinery and equipment market in Malaysia increased from RM1bil in 2015 to RM1.97bil in 2017 at a compound annual growth rate of 40.36%.