HSS Engineers fetches 14% premium in debut on Bursa Malaysia

KUALA LUMPUR: Engineering design services provider HSS Engineers Bhd closed at a premium of 14%, or 7 sen, over its issue price of 50 sen in its debut on the ACE Market of Bursa Malaysia yesterday.
The stock began its first-day trading at 58 sen, hit a low of 55 sen and a high of 58.5 sen before ending at 57 sen. It was the third most active counter, with 85.52 million shares traded.
Speaking at its listing ceremony yesterday, its executive director and co-founder Datuk Kunasingam Sittampalam said the company aims to venture into India and the Middle East through strategic partnerships or joint ventures with existing operating companies to reduce its dependency on a single market.
HSS operates three offices, one each in Kuala Lumpur, Penang and Chennai, India.
"We will remain focused on strengthening our three existing core services on top of gearing up to adopt a fourth core service, that is facility management.
"This new division will allow us to position ourselves as a total engineering and project management service provider, and consequently, generate steady recurring income stream for the group," Kunasingam said.
Besides engineering design services, the company provides construction supervision, project management, as well as building information modelling services.
HSS's initial public offering (IPO) entailed the issuance of 95.72 million shares comprising a public issue of 63.82 million new shares and an offer for sale of 31.91 million existing shares. HSS raised RM31.91 million based on a public issue of 63.816 million new shares.
Kunasingam said about 75% of the IPO proceeds will be used to fund the expansion into the Indian market and future ventures into support services for the water and power sectors in Malaysia, and 12.6% of the proceeds will go to the repayment of bank borrowings and the balance for general working capital expenditure.