KUALA LUMPUR (Oct 26): Betamek Bhd made a strong debut on the ACE Market of Bursa Malaysia on Wednesday (Oct 26), opening 23% higher over its initial public offering (IPO) price of 50 sen a share and adding further gains throughout the day to end 42% or 21 sen higher at 71 sen. At market close, Betamek's market capitalisation was RM319.5 million.
Betamek's share price even touched an intra-day high of RM1 as over 88.78 million shares were traded within the first 30 minutes of trade. The counter was the most actively traded as 260.46 million shares changed hands.
Under the listing exercise, Betamek issued 67.5 million new shares, representing 15% of its enlarged share capital, at an issue price of 50 sen per share.
The company, which saw its IPO oversubscribed by 17.06 times by the Malaysian public, aimed to raise RM33.8 million from the IPO.
As part of the listing exercise, existing shareholder Iskandar Holdings Sdn Bhd also made an offer for sale of 45 million existing shares to selected investors by way of private placement.
In a statement following its debut, Betamek said it is well positioned to benefit from the upswing in the automotive industry, as the automotive supply chain continues to improve.
The company, which provides one-stop electronics manufacturing services solutions to automotive makers, noted that it is optimistic about growth in demand for its vehicle audiovisual products and vehicle accessories, as its major customer Perusahaan Otomobil Kedua Sdn Bhd (Perodua) continues to see rising demand for its vehicles.
Perodua recently announced that it sold 69,011 vehicles in the third quarter of 2022 (3Q2022), as compared with 65,719 units in 2Q2022. For January to September, sales rose by 64.9% to 196,354 units, from 119,093 units sold last year.
Betamek managing director Mirzan Mahathir said the company has been expanding its product portfolio by including new automotive electronics solutions and technologies required to complement the features of its products over the years.
“There are still many untapped opportunities in product segments in relation to advance driver assistance systems, entertainment and connectivity, the Internet of Things, and accessories of vehicles.
“We intend to focus on research and development (R&D) activities within these areas of end-product applications, which involve the inter-networking of devices embedded with electronics, sensors, actuators and network connectivity.
“The concept of inter-networking, including Bluetooth, Wi-Fi, 4G, 5G and other future technologies, is driving the automotive industry towards the design of new-generation products,” he said.
Looking ahead, he said Betamek is in a unique position to leverage this growing market trend, besides expanding and diversifying its product offerings with competitive solutions, as hybrid, electric and autonomous driving vehicles gain global market share.
As at Aug 31, Mirzan said, Betamek was still in the early stages of undertaking joint R&D with its technology partners, but the company has commercialised some of these technologies as features in Perodua’s latest vehicle models.
“We will continue to identify new technologies that we consider to have significant growth potential, and introduce them as features in our product offerings, particularly those which may have synergistic potential with our existing key product categories,” he added.
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