KUALA LUMPUR: Electronics manufacturing solutions provider Cnergenz Bhd made its debut on the ACE Market of Bursa Malaysia Securities today, opening at 60.5 sen per share above its initial public offering (IPO) price of 58 sen per share, chalking up a 2.5 sen or 4.31% premium.

The stock closed unchanged at 58 sen on volume of 109.865 million shares, giving the company a market capitalisation of RM288 million. It was the fifth most active stock on Bursa today.

Cnergenz CEO and executive director Lye Yhin Choy remarked that it is happy with the opening price and the positive reception of its listing on the ACE Market.

The group raised RM58.0 million through its IPO, which is expected to be used for the company’s facility expansion plans, research and development activities, as well as general working capital purposes.

“Our plan is to expand our smart factory solutions. Proceeds obtained from this listing exercise will (go towards) setting up our acquired land to build our new factories and to increase our product offerings,” Lye told a virtual press conference following its listing.

In the next three years, the company will be increasing its headcount for product development and will announce new product solutions.

Planning and construction of Cnergenz’s new factory is pending approval from Penang Development Corp, which it hopes to obtain soon. The estimated completion date of the factory will be in the second half of next year.

Chairman Datuk Azman Mahmud believes the introduction of Cnergenz to the stock exchange will bring greater visibility to investors, and highlights the importance of electronics manufacturing solutions in building up an advanced and efficient manufacturing ecosystem in the country, further strengthening Malaysia’s position as a global electronics and semiconductor hub.

The Penang-based company specialises in surface mount technology manufacturing solutions for the electronic and semiconductor (E&S) industries. Cnergenz offers its solutions, ranging from integrated solutions such as production line systems and smart factory solutions, to individual machinery, equipment and tools, to its network of over 100 customers operating within the E&S Industries.

Cnergenz’s market base is primarily in Malaysia, which contributed 71.9% to the group’s revenue in the financial year ended Dec 31, 2021. It has ventured into overseas markets, namely Vietnam and Thailand.