PETALING JAYA: Siab Holdings Bhd made its debut yesterday on the ACE Market of Bursa Malaysia Securities today with a 13.3% premium, opening at 34 sen a share, 4 sen higher than the initial public offering (IPO) price of 30 sen a share.
The building construction services provider’s share price ended at 31 sen, 1 sen above its offer price, with 188.3 million units traded.
Siab raised RM36.72 million from the IPO and RM13.13 million of the proceeds will be used to purchase machinery and equipment, RM6.1 million to buy land and build a storage facility and RM9.3 million for working capital. Aside from that, RM300,000 has been allocated for office expansion, RM400,000 for upgrading software and system, and the remaining RM4 million for defraying listing expenses.
Siab managing director Ng Wai Hoe said the proceeds will enable the company to better position itself in the construction industry to bid for higher-value projects which in turn will deliver better value to shareholders.
“We are well poised to take on larger projects in both the residential and non-residential segments,” he said.
Upon listing, Siab will have a market capitalisation of RM146.89 million and an enlarged total number of issued shares of 489.63 million.
M&A Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.