PETALING JAYA: Manufacturing automation solutions provider i-Stone Group Bhd made its debut on the ACE Market today at 25 sen, representing a 56.25% premium over its initial public offering (IPO) price of 16 sen with an opening volume of 7.24 million shares.
The stock rose to an intraday high of 27.5 sen before closing its first trading day at 24.5 sen, representing a 53.13% premium over its IPO price. It was the most actively traded stock on the bourse today with a total of 447.92 million shares traded.
Its managing director Rebecca Tee Sook Sing said the company plans to design, develop and manufacture standard modules which can be used for its range of specialised automation machines to reduce manufacturing lead time.
It also intends to develop new products and introduce new features into its machines to meet customers’ increasing demands for higher productivity and efficiency of their manufacturing operations.
“We have earmarked RM6.8 million for the construction of our new design and development centre. Our manufacturing capabilities would also be boosted by the acquisition of new machineries,” she said.
“The board is positive of our group’s prospects, after taking into consideration our future plans as elaborated above, our key competitive strengths, as well as the positive outlook of the specialised machinery and equipment market in Malaysia from 2018 to 2020,” she added.
The group’s portfolio of customers, who come from a variety of industries, includes manufacturers and brand owners of home appliances, consumer electronics devices, industrial product and automotive parts. It is also servicing notable names in the electrical and electronics industry.
i-Stone’s IPO entailed a public issue of 244.3 million new shares and an offer for sale of 122.1 million existing shares by way of private placement to selected investors at an issue price of 16 sen per share.
The offer of 244.3 million shares represents 20% of the company’s enlarged number of issue shares with 61.07 million units earmarked for public investors, 12.22 million shares for its eligible directors and employees, 122.15 million to identified bumiputra investors while the remaining 48.86 million was offered via private placement to selected investors.
The group’s IPO was oversubscribed by 11.56 times with a total of 6,522 applications for 767.29 million new shares valued at RM122.76 million received for the retail offering of 61.07 million new shares.
The RM39.1 million proceeds raised by i-Stone will be used for process and product development, repayment of bank borrowings, construction of a new design and development centre at its existing operations centre in Taman Teknologi, Johor, purchase of new machineries and software to enhance its manufacturing capabilities, purchase of new robotic arms and working capital requirements.
