PETALING JAYA: Greatech Technology Bhd saw a premium of as much as 17 sen or 27.7% to a high of 78 sen for its maiden trading on the ACE Market of Bursa Malaysia today.
The stock opened at 63.5 sen, a 2.5 sen or 4% premium over its offer price of 61 sen.
At market close, it gained 13 sen or 21.3% to 74 sen with 192.72 million shares changing hands, giving it a market capitalisation of RM463.24 million.
With the listing, the industrial automation solutions provider aims to expand into the US and China, allocating RM18 million out of the RM73.05 million initial public offering (IPO) proceeds for business expansion, development and marketing activities.
Meanwhile, some RM5 million will be utilised towards capital and development expenditure; RM36.55 million for working capital; and the remaining RM8.5 million for repayment of bank borrowings and defrayment of IPO expenses.
Greatech’s IPO was oversubscribed by 9.41 times for the offering to the Malaysian public.
“Having established a strong platform and international track record with brands such as First Solar and Panasonic, I am very confident that we will be able to tap into other opportunities from continuous adoption of industrial automation. Moving forward we are looking at bringing our automation solutions across industries and geography,” said its CEO EK Tan in a statement today.
Greatech and its subsidiaries are involved in the design, manufacturing, installation and commissioning of customised single automated equipment up to production line systems for industrial process automation.
The group is backed by its in-house design and machining capabilities to customise unique solutions to fit clients’ requirements.
For financial year ended Dec 31, 2018, it reported a net profit of RM31.72 million on the back of RM219.58 million in revenue with about 90% of revenue derived overseas.