KUALA LUMPUR (Oct 27): The share price of Econframe Bhd, which made its debut on ACE Market, rocketed to an intraday high of 43.5 sen, up 15.5 sen or 55.35% against its initial public offering price (IPO) of 28 sen.
At the closing bell, the door manufacturer ended the maiden trading day at 37 sen, which was nine sen or 32% higher against its IPO price.
Econframe was the most actively traded stock on Bursa Malaysia with 294.55 million shares traded. Its high trading volume is equivalent to 90% of its issued share capital of 325 million shares.
Speaking at a virtual listing ceremony, Econframe group managing director Lim Chin Horng said the listing would accelerate its strategic plans. The fresh funds raised will be used to broaden its market presence in the industry.
According to Lim, the company has built up a resilient business with a strong foundation and solid fundamentals over the past two decades.
He said its products have been widely distributed and well received by various notable property developers in Malaysia.
"Based upon our track record and strong clientele portfolio, we are confident we will continue to thrive as we open the door to new possibilities," he added.
Some of Econframe's notable customers include Aset Kayamas, EcoWorld, Gamuda, IJM Land, IOI Properties, LBS Bina, Mah Sing, Matrix Concepts, Sime Darby and S P Setia.
Lim shared that the group has secured an unfulfilled purchase order worth RM47 million, which shall keep the company busy until end-2021.
"In addition to that, we foresee more property launches to follow through as major property developers continue to introduce new property projects.
"Our growth will continue to be driven by the fire-resistant door sets, ironmongery, and wooden doors segments while supported by steady demand for the metal door frames segment," he added.
Meanwhile, Lim acknowledged that the company does not have any dividend policy, but will consider paying dividends when it makes good profit.
To recap, Econframe booked a net profit of RM5.34 million on revenue of RM40.62 million for the cumulative 12-month period ended Aug 31, 2020.