Coraza surges on ACE Market debut to 70 sen a share

(L to R) Gary Ting, head of corporate finance, M&A Securities Sdn Bhd; Datuk Seri Abdul Rafique Abdul Karim, independent director, Coraza; Tony Ng, executive chairman of Coraza; Lim Teik Hoe, managing director of Coraza; Datuk Bill Tan, managing director of corporate finance, M&A Securities; Ng Hong Kiat, deputy chairman, Coraza; Rusmin Alwani Shukery, independent director, Coraza at the listing ceremony on Thursday

KUALA LUMPUR: Coraza Integrated Technology Bhd opened at 70 sen a share, which was a 150% premium to its initial public offering price of 28 sen a unit, on its debut on the ACE Market of Bursa Malaysia.

At 10.53am, shares in the engineering supporting services provider were trading 141.07% or 39.5 sen higher at 67.5 sen a share on the back of 137.41 million shares traded.

Based on its enlarged share capital of 428.3 million shares, Caroza's market capitalisation stands at RM289.1mil at the time of writing.

In a statement, Coraza managing director Lim Teik Hoe said the Covid-19 pandemic is expected to have a positive impact on the semiconductor industry in the long due to the push towards digitalisation and the adoption of new technologies.

"As the backbone of all electronic products, semiconductors will be one of the most important sectors, in which technology is expected to play a much greater role than before.

"Right now, the industry is experiencing an unprecedented boom," he said.

On future plans, Lim said the group aims to double its manufacturing floor space to meet the growing demand for its services.

The first step of its plan will be to extend its existing factory to house new machines, which is expected to be completed by this month.

Apart from the extension, Coraza intends to construct a new factory adjacent to its existing factory in Nibong Tebal, Penang, and purchase new machinery over the next three years.

It said the new factory, which will be constructed in three phases and targeted for completion by December 2023, will expand Coraza's production capabilities and provide finishing services to customers in the future.

“The additional laser, turret and bending machines, which have more advanced functions, will increase Coraza’s sheet metal fabrication capacity by 25%. On the other hand, the new finishing line will allow it to get the process done in-house as it was previously outsourced.

“The investment into aerospace is a strategy to enhance Coraza’s capabilities in meeting aerospace engineering and quality standards, which are higher than those of other industry segments.

"This serves as a competitive advantage for the company to engage customers, even for the non-aerospace industry segments," said Lim.
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