Betamek makes strong debut at 61.5 sen, most active on Bursa

From left: Betamek executive director Muhammad Fauzi Abd Ghani, independent non-executive director Mohd Shahriman Mohd Sidek, independent non-executive director Azlina Abdul Aziz, independent non-executive chairman Ahmad Subri Abdullah, managing director Mirzan Mahathir, M&A Securities managing director of corporate finance Datuk Bill Tan, Betamek independent non-executive director Yap Suan See and M&A Securities head of corporate finance Gary Ting

KUALA LUMPUR: Betamek Bhd made a strong start on the ACE Market of Bursa Malaysia, jumping 11.5 sen or 23% above its initial public offering price to 61.5 sen at the open.

As at 10.50am, the share had seen over 118 million units crossing hands, making it the most actively traded counter on Bursa Malaysia at the time of writing.

The electronics manufacturing services (EMS) provider had issued 67.5 million new shares under the listing exercise, which represents 15% of the enlarged share capital, at an issue price of 50 sen a share, and made an offer for sale of 45 million existing shares to selected investors via private placement.

Following the positive trading debut, managing director Mirzan Mahathir said the company is optimistic that demand for its vehicle audio visual products and vehicle accessories will continue to grow given the rising demand for its major customer Perodua's vehicles.

He added that the company is in a unique position to leverage the growing market trend for hybrid, electric and autonomous driving vehicles, as well as expand and diversify its product offerings with competitive solutions.

Mirzan said the company has been expanding its product portfolio by including new automotive electronic solutions and technologies required to complement the features of its products.

“We consider that there are still many untapped opportunities for product segments in relation to AdvanceDriver Assistance Systems (ADAS), entertainment and connectivity, Internet of Things (IoT) and accessories of vehicles.

“We intend to focus on research and development (R&D) activities within these areas of end-product applications, which involves the inter-networking of devices embedded with electronics, sensors, actuators and network connectivity.

"The concept of inter-networking including Bluetooth, Wi-Fi, 4G, 5G and other future technologies are driving the automotive industry towards the design of new generation products," he said in a statement.

He noted that the company was still in the early stages of undertaking joint R&D with its technology partners, and had commercialised some of these technologies as features in Perodua’s latest vehicle models.

"We will continue to identify new technologies that we consider to have significant growth potential and introduce these as features in our product offering, particularly those which may have synergistic potential with our existing key product categories,” he added.