KUALA LUMPUR: EGH International Bhd (EGHI) made a subdued debut on the ACE Market of Bursa Malaysia on Friday, with its shares trading below their initial public offering (IPO) price of 16 sen.
The turnkey interior fit-out services provider's shares were down 1.5 sen, or 9.38%, at 14.5 sen at 9.32 am.
The stock was the most actively traded counter on Bursa Malaysia, with 53.99 million shares changing hands.
EGHI's IPO involved 360 million shares, comprising a public issue of 240 million new shares and an offer for sale of 120 million existing shares at 16 sen apiece.
The issuance of new shares raised RM38.4mil in gross proceeds, which will be used to construct a new head office, warehouse and Interior Premium Outlet showroom in Puchong, Selangor, repay borrowings, fund working capital and defray listing expenses.
The proposed five-storey industrial building will occupy about 2.67 acres, with a built-up area of approximately 130,000 sq ft.
EGHI is principally involved in providing interior fit-out services, as well as the sale of furniture, fittings and equipment and building materials.
Berjaya Securities Sdn Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for EGHI's IPO exercise.
Separately, EGHI announced that its wholly-owned subsidiary, ECO Group Holdings Sdn Bhd, had entered into a memorandum of understanding (MoU) with Karuna Venture Holdings Sdn Bhd to establish a joint venture to refurbish, upgrade and commercialise existing buildings in Sarawak.
Under the proposed joint venture, ECO Group will hold a 51% stake, while Karuna will own the remaining 49%. The venture will explore opportunities to repurpose buildings for commercial, hospitality, office, healthcare, residential and institutional uses, with ECO Group overseeing refurbishment and interior fit-out works, while Karuna spearheads business development in Sarawak.
