HE Group climbs on ACE Market debut

KUALA LUMPUR: Electrical engineering service provider HE Group Bhd made its debut on the ACE Market of Bursa Malaysia at 43 sen a share, which represents a 15 sen or 53.57% premium to its initial public offering price of 28 sen a share.

The counter, which was moved within a range of 39.5 to 45 sen over the first 25 minutes of trade, topped the actives list with over 60 million shares exchanging hands.

HE raised RM24.33mil from the IPO as it sought to grow its workforce and strengthen its internal capabilities. The company also seeks to strengthen its regional presence via the establishment of two new offices in Kulim, Kedah, and Johor Bahru.

Managing director Haw Chee Seng said the company is confident in attracting and servicing customers from the data centre sector given its successful track record in providing power distribution systems to related industries such as the semiconductor, medical devices, and electronic products.

"“Fuelled by funds raised from our IPO, we are strategically positioned to implement our expansion plans. This includes our transformation into a single-point-of-contact mechanical, electrical and process (“MEP”) utility engineering service provider, enabling us to competitively bid for large industrial and commercial projects," said Haw in a statement.

With an enlarged share capital of 440 million and an IPO price of 28 sen per share, the group had a market capitalisation of RM123.2mil upon listing.

For the financial years ended Dec 31, 2020, to 2022, HE Group’s revenue grew from RM31.39mil to RM107.57mil, delivering a compounded annual growth rate of 85.13%.