KUALA LUMPUR: Edelteq Holdings Bhd
made its debut on the ACE Market of Bursa Malaysia at 75 sen, a 212.5% premium over its issue price of 24 sen.
At 10.17am, the counter had risen 48 sen or 200% to 72 sen a share on the back of 65.06 million shares exchanging hands.
The company, which is an engineering support provider for integrated circuit assembly and test process in the semiconductor industry, expects to raise RM24mil from its initial public offering (IPO) as it seeks to expand its production capabilities.
Edelteq will allocate RM3.7mil of the IPO proceeds to fund the construction of the factory, while RM3.1mil will go towards research and development activities.
Of the remaining proceeds, RM3.4mil will be utilised for working capital, RM10.3mil to repay bank borrowings and RM3.6mil to defray listing expenses.
Hong Leong Investment Bank (HLIB) Research said Edelteq is well-positioned to capitalise on the growing demand for semiconductors in key industries such as automotive and telecommunications.
Additionally, their upcoming Batu Kawan factory, which is scheduled to commence operations in 2024, will significantly increase the company's annual production capacity, particularly for products like dicing blades and PCB gold fingers.
“All in, we are projecting Edelteq’s core net profit to record a strong FY23f-25f CAGR of 38%. We value Edelteq at a fair value of RM0.47 based on a target PE of 16.0x FY24f EPS of 3.0sen,” HLIB Research said.
