Thursday 28 Mar 2024
By
main news image

This article first appeared in The Edge Financial Daily on June 14, 2019

KUALA LUMPUR: Greatech Technology Bhd made a strong debut on Bursa Malaysia’s ACE Market yesterday, in stark contrast to HPMT Holdings Bhd, whose share price fell below its issue price on its maiden trading day on Wednesday.

Greatech opened at 63.5 sen, above its issue price of 61 sen, and subsequently climbed to an intraday high of 78 sen in the afternoon session, before paring gains to settle at 74 sen. This translates into a 13 sen or 21.3% first-day gain, making the counter the 10th-largest gainer among all Bursa Securities yesterday.

The stock was also the day’s most actively traded, with 192.72 million shares changing hands, equivalent to 30.8% of the group’s outstanding shares.

At 74 sen, Greatech is valued at RM463.24 million.

Greatech primarily manufactures equipment used to automate processes in production lines. Its products range from single automated equipment to a production line system which comprises multiple automated equipment.

Greatech’s initial public offering (IPO) raised RM73.05 million for the group’s business expansion and market activities (24.64%), capital expenditure (6.85%), research and development (6.85%), working capital (50.03%), repayment of bank borrowings (6.16%) and listing expenses (5.47%).

Greatech’s IPO was oversubscribed by 9.41 times.

A day earlier, cutting tools manufacturer and distributor HPMT suffered a near 11% decline in its share price to below the offer price of 56 sen.

HPMT closed six sen or 10.7% lower at 50 sen on its first day of trading. Yesterday, the counter closed at 50.5 sen, valuing the group at RM165.89 million.

HPMT’s IPO raised RM42.31 million, of which 80.3% is meant for new machinery and equipment, 6.9% for working capital, and 12.8% for listing expenses.

The group’s IPO was oversubscribed by seven times.

      Print
      Text Size
      Share