ACO active, slumps 32% on ACE market debut

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KUALA LUMPUR (March 18): Shares in electrical distributor ACO Group Bhd fell on its ACE Market debut today after opening at 20 sen, which is 28.6% lower than its initial public offering (IPO) price of 28 sen.

The stock slid as much as 32.14% or nine sen to 19 sen amidst a generally cautious market this morning. A total of 36.49 million shares exchanged hands, making ACO Group one of Bursa Malaysia's most active stocks at the time of writing.

Under ACO Group’ listing exercise today, the group raised RM16.2 million from its public issue of 58 million new shares and an offer for sale of 25 million existing shares at 28 sen a share.

From the total proceeds, some RM4.2 million would be used to set up new sales outlets and concept stores and RM2.5 million would be for a new head office and distribution centre in Johor.

It will also allocate RM2 million to purchase new trucks and upgrade Information Technology system, RM4.2 million for working capital, and RM3.3 million for estimated listing expenses.