Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on March 10, 2020

KUALA LUMPUR: Integrated water technology solutions provider Cosmos Technology International Bhd debuted on Bursa Malaysia’s LEAP Market yesterday at 31 sen, a three sen or 10.7% premium over its issue price of 28 sen each.

The counter closed at its intraday high of 36.5 sen, up 8.5 sen or 30.36%, despite a rout in equities downing share prices across the region. The counter saw some 60,300 shares traded.

Its managing director Datuk Chong Toh Wee said Cosmos Technology is riding on the government’s initiative to reduce non-revenue water (NRW) locally from 35.3% in 2017 to 25% this year under the midterm review of the 11th Malaysia Plan.

Chong said the group is currently bidding for a public NRW project worth about RM40 million, with a tendering scope involving supplying products such as electronic flowmeters and data logging systems.

Cosmos Technology specialises in distributing and servicing Siemens Malaysia’s electronic flowmeters used for measuring water flow in pipes to its water and waste-water players including Pengurusan Air Selangor and Ranhill Holdings Bhd, the water operator for Johor.

In 2018, Cosmos Technology held a market share of 17.7% or RM12.4 million for electronic flowmeters in Malaysia.

Upon its listing yesterday, Cosmos Technology raised RM5.4 million in proceeds, of which RM1.5 million is for business expansion expenses for energy-saving solutions and data loggers distribution.

It will also set aside RM1.5 million to partly finance the acquisition of new machinery, RM1.4 million for working capital and RM1 million for listing expenses.

Chong said part of the listing’s proceeds would be allocated for the introduction of new water digitalisation solutions by establishing pilot projects featuring Siemens Malaysia’s energy-saving solution at water and waste-water treatment plants.

The software-based solution is key for the digitalisation and automation of water facilities’ operations and management to reduce electricity costs and enhance operational efficiency.

“Additionally, through its digitalisation, Cosmos Technology would distribute LACROIX Sofrel data loggers, which can be integrated with Siemens Malaysia’s electronic flowmeters, to record and store data on water flow.

“Integrating LACROIX Sofrel data loggers allows operators and the authorities to monitor water flow at water treatment plants in real time, and in industrial and commercial applications,” he added.
 

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