KUALA LUMPUR (Sept 25): Shares in MTAG Group Bhd, which is involved in the printing of labels and stickers, fell below the group's initial public offering (IPO) price of 53 sen each on the company's debut on Bursa Malaysia's ACE Market today.
At 10:38am, MTAG's share price fell 1.5 sen to 51.5 sen with some 199 million shares exchanged. MTAG was Bursa's most-active stock.
Earlier, MTAG shares opened up 17 sen or 32% at 70 sen.
Speaking at a press conference after the listing ceremony here, MTAG group managing director Chaw Kam Shiang said the group has so far identified two suitable locations, either in Senai or Tebrau in Johor, for the group's proposed plant.
Chaw said construction of the plant is expected to be completed in three years.
"The [IPO] proceeds raised allow us to implement the growth strategies we have in place. The new manufacturing plant that we will be constructing is much larger than our current facilities.
"In turn, together with the new machinery that we will be purchasing, our capacity and capabilities will be enhanced, enabling us to capture a bigger market share and further establishing ourselves in the local label printing and converting industry," Chaw said in a statement issued to reporters at the press conference.
According to MTAG's prospectus, its IPO involved a public issue of 136.32 million new shares in the company besides an offer for sale of 68.16 million existing shares at 53 sen each.
At 53 sen each, the company raised RM72.25 million from the public issue of 136.32 million new shares.