KUALA LUMPUR (Oct 27): Total door system solution provider Econframe Bhd made a strong debut on the ACE Market of Bursa Malaysia today, with its share price rising as much as 15.5 sen or 55.36% to 43.5 sen from its initial public offering (IPO) price of 28 sen.
At 10am, the counter had pared gains to 37.5 sen, still up 9.5 sen or 33.93%. Some 240.42 million shares were traded, making it the most active counter on Bursa Malaysia this morning.
Econframe shares earlier opened higher at 34.5 sen, which was 6.5 sen higher or a 23.21% premium compared to its IPO price.
Speaking at the virtual listing ceremony, Econfame group managing director Lim Chin Horng said the listing would accelerate its strategic plans with the funds raised used to broaden its market presence in the industry.
According to Lim, the company was incorporated in 2001 and has since built up a resilient business with a strong foundation and solid fundamentals.
He said its total door solutions had 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 had secured a purchase order worth RM47 million, which shall keep the company busy until end-2021.
Under today's listing exercise, the company aims to raise approximately RM18.2 million.
Of the total funds raised, RM5 million would be allocated for land acquisition and construction of a new manufacturing facility, followed by RM4 million for investment in manufacturing automation, RM6.2 million for working capital needs and the remaining RM3 million for estimated listing expenses.
The market has shown strong demand for Econframe shares. The public issue of 16.25 million new shares for the Malaysian public was oversubscribed by 40.23 times.