Managing director Nomis Sim Siang Leng said he is happy with the listing and looks forward to embarking on an exciting next phase of growth.
PETALING JAYA: Building materials wholesaler and distributor Unitrade Industries Bhd
made its debut on the ACE Market of Bursa Malaysia at 26.5 sen yesterday.
Managing director Nomis Sim Siang Leng said he is happy with the listing and looks forward to embarking on an exciting next phase of growth.
“This is not the best time for a listing, considering Wall Street has impacted the whole world overnight, and it’s beyond our control.
“However, in the long term, we are confident with the company and its fundamentals and we will continue to grow irrespective of the share price,” he said at a virtual press conference yesterday.
Unitrade raised RM100mil through its initial public offering (IPO), of which RM50.5mil or 50.5% will be used as working capital and the remaining RM39.8mil or 39.8% shall go towards repayment of bank borrowings.
“With the recent relocation to a warehouse that is double the size of our previous one, coupled with the IPO proceeds raised, we now have the capacity and capability to increase our inventory volume and product range to meet the escalating demand for building materials from the construction sector,” he added.
Meanwhile, RM5mil will be allocated for capital expenditure to set up a pipe fabrication centre and RM4.7mil has been earmarked for listing expenses.
“In addition, we will be among the first in Malaysia to build a new pipe-fabrication centre to broaden our value-added service offerings to our customers.
“This facility will provide a long list of benefits to our customers, such as manpower reduction, acceleration of construction progress and more efficient use of space at construction sites,” he said.
The Selangor-based industrial company’s products are heavily used in refurbishments, retrofitting, repair and maintenance works. As such, it plays a critical and holistic role in supporting the full lifecycle of buildings and infrastructures.
“On a macro view, we are upbeat on the building materials industry which is buoyed by the acceleration and rollout of major infrastructure projects.”
