KUALA LUMPUR: Automation solutions and engineering services provider 3REN Bhd opened 19.6% higher on the ACE Market following a successful initial public offering (IPO) that raised RM30.8mil.
The share opened for trading at 33.5 sen, a 5.5 sen increase over its IPO price of 28 sen, on opening volume of 11.7 million shares.
Buying interest in the company continued over the early morning session, with the market valuing the share at 35.5 sen as at 10.28am after 102.94 million shares traded.
3REN has allocated RM19.2mil or 62.3% of its IPO proceeds to business expansion and operational requirements, which includes the setting up of new delivery centres, R&D costs and establishing a sales office in Singapore.
The remaining RM11.6mil of the IPO proceeds will go towards repaying borrowings and listing-related expenses.
3REN executive director and CEO Koh Dim Kuan said Southeast Asia has also emerged as a hotspot for manufacturing activities due to the increasing demand for outsourcing activities, which will serve as strong catalyst given the modernisation and transformation of manufacturing facilities towards Industry 4.0 and 5.0.
"Given the opportunities that lie ahead, our strategic plans bode well for us to capture higher market share and we look forward towards the next chapter of our journey as a listed entity," he added in a statement.
