3REN climbs 20% on ACE Market debut

From left: 3REN independent non-executive director Teresa Tan Siew Kuan, independent non-executive director Joyce Wong Ai May, independent non-executive director Ahmad Khairuddin Abdul Rahim, executive director and CEO Koh Dim Kuan, non-independent non-executive chairman Datuk Boonler Somchit, non-independent non-executive director Mohammad Hazani Hassan, independent non-executive director Hanita Othman, Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar, KAF Investment Bank Bhd CEO Rohaizad Ismail, deputy CEO Thariq Usman Ahmad and Bursa Malaysia director of corporate strategy Aina Zahari

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.