Firm debut for Econframe amid weaker market

Great start for Econframe: From left are Econframe's independent director Tan Hock Soon, managing director Lim Chin Horng, director Lim Saw Nee, managing director of corporate finance of M&A Securities Sdn Bhd Datuk Bill Tan, Econframe executive director Khoo Soon Beng and independent director Ilham Fadilah Sunhaji.

KUALA LUMPUR: Econframe made a firm debut on the ACE Market on Tuesday at 34 sen, or 6.5 sen above its offer price of 28 sen amid a weaker broader market.

At 9.08am, it was trading at 40 sen, up 12 sen. There were 151.98 million shares done at prices ranging from 34.5 sen to 43.5 sen.

The FBM KLCI was down 0.67 of a point or 0.04% to 1,493.94. Turnover was 403.16 million shares valued at RM216.96mil. There were 176 gainers, 231 losers and 273 counters unchanged.

Under its IPO, Econframe’s offer of 16.25 million new shares to the public under its listing exercise was oversubscribed by 40.23 times.

The total door system solution provider received 11,827 applications for 670.02 million new shares with a total value of RM187.60mil.

The listing exercise entailed a public issue of 65 million new ordinary shares where it will raise about RM18.20mil. The vendors also offered for sale of up to 32.50 million existing shares.

Upon listing, Econframe will have market capitalisation of RM91mil based on the issue price of 28 sen and its enlarged share capital of 325 million shares.

The company recorded revenue of RM10.64mil in the fourth quarter ended Aug 31,2020 from RM4.78mil in the third quarter due to the fallout from the Covid-19. Profit before tax rose to RM1.73mil from RM170,000 in 3Q.

For the financial year ended Aug 31,2020, its revenue was RM40.62mil, down from RM44.09mil a year ago.

In a statement, Econframe’s group managing director Lim Chin Horng said: “Today marks a momentous occasion for all of us in Econframe as we begin our next chapter of growth.

“We believe that being a listed company will definitely strengthen our foothold and broaden our market presence in the industry as we strive to bring our group to greater heights and deliver sustainable value to our shareholders.”

Lim said the company has been busy over the past few months since the resumption of economic activities.

He added the momentum was expected to remain for next quarters as it has unfulfilled purchase orders of about RM47mil.

“In addition to that, we foresee more property launches to follow through as major property developers continue to introduce new property projects.

“Our growth will continue to be driven by the fire-resistant door sets, ironmongery, and wooden doors segments while supported by steady demand in metal door frames segment, ” he added.

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Econframe , Bursa Malaysia , ACE Market


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