KUALA LUMPUR: Sum Technology Bhd got off to a strong start on its ACE Market debut on Thursday, opening at 40 sen, a premium of 12 sen or 42.9% over its initial public offering (IPO) price of 28 sen.
The integrated turnkey solutions provider extended its gains in early trade, with its shares jumping 76.79%, or 21.5 sen, to 49.5 sen at 10.58 am.
The counter was the second most actively traded stock on Bursa Malaysia, with 144 million shares changing hands.
“Today marks an important milestone for Sum Technology as we embark on our journey as a listed company.
“Since our establishment, we have steadily built our capabilities and track record in delivering cleanroom and MEPF engineering solutions across various high-tech and industrial sectors,” executive director and chief executive officer Lee Thiam Hing said in a statement.
“The IPO proceeds will strengthen our financial position and support our next phase of growth, including expanding our engineering capabilities, strengthening our regional presence and increasing our participation in larger-value projects.
“We would also like to express our appreciation to Malacca Securities for their guidance and support throughout this listing process,” he added.
Sum Technology raised RM32.76mil from its IPO through the issuance of 117 million new shares at 28 sen apiece.
The IPO comprised 22.5 million shares allocated to the Malaysian public, 4.5 million shares for eligible employees, 33.75 million shares placed out to selected investors and 56.25 million shares allocated to selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
Based on its enlarged share capital of 450 million shares, Sum Technology debuted with a market capitalisation of RM126mil.
The IPO proceeds will be used mainly to fund business expansion, design and development activities, the establishment of an office in the Philippines, as well as working capital requirements.
Malacca Securities Sdn Bhd acted as the principal adviser, sponsor, underwriter and placement agent for the IPO.
