Aemulus shares close 41% higher on debut

KUALA LUMPUR: Aemulus Holdings Bhd, which made its debut on the ACE Market of Bursa Malaysia Securities Bhd yesterday was the second most actively traded counter, with its share price closing 41.07% or 11.5 sen higher at 39.5 sen, above its 28 sen issue price. Some 92.26 million shares were traded.
The technology company opened at 36 sen yesterday, for a premium of eight sen, with 5.82 million shares traded.
“I think we are satisfied (with the opening price). When we decided to go for listing, the market was not really at the best time for us to go out, but unexpectedly this morning there was a boost,” its independent non-executive chairman Chok Kwee Bee told reporters at a press conference after the listing ceremony.
The government on Monday announced a RM20 billion injection to boost underperforming shares, which is expected to restore market confidence and sentiment damaged by the weakening ringgit. The FBM KLCI closed up 0.47% to 1,648.04 points yesterday, with gainers out numbering losers. There were 432 gainers as compared to 415 losers.
“The strong market (sentiment) is obviously good for the company as well. But the company is focusing on attracting long-term investors, so that they will continue to stay with the company throughout the good and bad times in the market,” she added.
Its initial public offering (IPO) entails a public issue of 87.79 million new ordinary shares, of which 52.68 million shares are allocated for private placement to selected investors; 13.17 million shares for eligible directors and employees of the group and 21.94 million shares for the public.
The IPO raised RM24.58 million in proceeds, with RM12.88 million earmarked for working capital, RM6 million for research and development expenditure, RM2 million for property purchase, plant and equipment; RM1.2 million for marketing, branding and promotional activities and RM2.5 million for listing expenses.
Upon listing, Aemulus will have a market capitalisation of RM122.88 million.
Going forward, CEO Ng Sang Beng said the company is planning to upgrade its existing products, set up a new tester research laboratory, introduce new automated test equipment (ATE) into the product line-up, as well as expand its geographical presence.
For the third quarter ended June 30, 2015, Aemulus recorded a net profit of RM3.6 million, with a revenue of RM12.8 million, of which ATE sales contributed 97% of the revenue.
For the 12-month period, the company achieved a net profit of RM6.97 million, with a revenue of RM23.87 million.