KUALA LUMPUR: Colform Group Bhd rose nearly 14% in early morning trade as it commenced trading on Bursa Malaysia.
The East Malaysia-based steel and building material specialist's share price rose to an intra-morning high of 41 sen a share, five sen higher than its initial public offering (IPO) price of 36 sen a share after 68.49 million shares crossed, making it the most actively traded counter on the domestic market.
Colform had raised RM41.1mil from its ACE Market IPO to expand its steel manufacturing and installation operations.
It revealed in its prospectus previously that RM9mil will be used to set up a colour coil coating production line at its Kota Kinabalu factory, while RM4.5mil will go towards constructing a new storage facility in Kota Kinabalu.
RM5.1mil will be utilised for business expansion into Peninsular Malaysia, including establishing a branch office and leased factory in Klang.
Of the remaining funds, RM18.09mil will be for working capital, and RM4.5mil for listing expenses.
For its third quarter ended Sept 30, 2024 (3Q24), Colform reported a net profit of RM4.3mil on revenue of RM30.49mil.
There are no comparative figures for the preceding corresponding quarter as no interim financial report was prepared for the comparative period.
Rakuten Trade, which has a "buy" call and fair value of 52 sen on the company, said in its IPO note that Colform is well-equipped to sustain its financial strength and drive long-term growth post-listing.
"We project Colform to achieve core net earnings of RM18.4mil-RM22.4mil for FY24-FY26," it said.
