KUALA LUMPUR (June 29): Nestcon Bhd was actively traded upon its debut on Bursa Malaysia's ACE Market today.

The stock, which opened two sen or 7.14% higher, rose as much as nine sen or 32.14% to 37 sen in the morning, against the construction services provider’s initial public offering price of 28 sen apiece in conjunction with the company’s listing.

On market close, the stock pared some gains and settled at 32 sen, up 14.29% or four sen over its IPO price.

The new kid on the block saw brisk trading with 257.06 million shares exchanging hands, making it the second most actively traded stock of the day.  

Based on Nestcon’s closing price of 32 sen and its 643.82 million issued shares, the company now has a market capitalisation of RM206.02 million.

Speaking to reporters today after the virtual listing ceremony, Nestcon group managing director Datuk Dr Lim Jee Gin said the group has an order book of about RM1.9 billion, of which an estimated RM1.2 billion portion remains unbilled.

“Currently, we still have an unbilled order book of RM1.2 billion, which is going to [be] spread over the next three years.

“[In addition,] we have managed to secure some [new] contracts and we will make an announcement soon. So, in terms of revenue, definitely there will be growth,” Lim claimed.

According to Nestcon’s statement which was issued to reporters covering the company’s listing today, Nestcon has not encountered any contract termination thus far, despite the Covid-19 pandemic.

In terms of order book replenishment, the company said it has more than 50 tenders valued at around RM2.8 billion.

On Nestcon’s listing, Lim said in the statement that the important milestone of becoming a public-listed entity after many years of hard work is, however, not the end but the beginning of an exciting journey for Nestcon, as the company sets its sight on further enhancing its status as a reputable and trusted construction industry player.

“On the macro level, we are optimistic about the construction industry, backed by government-led initiatives and spending relating to infrastructure and housing developments. Furthermore, the acceleration of the (Covid 19) vaccination administered daily will play a vital part in the recovery of the economy.

"Coupled with the money raised from this IPO (initial public offering) exercise, Nestcon is poised to capitalise on the growth of the industry, moving forward. As such, we look forward to the exciting new chapter ahead for Nestcon,” Lim said.

According to Nestcon’s prospectus, its IPO involved a public issue of 160.96 million new shares and an offer for sale of 32.19 million existing shares in the company.

At 28 sen, the IPO's public issue of 160.96 million new shares raised RM45.07 million for Nestcon to finance its business expansion.

In its statement today, Nestcon said M&A Securities Sdn Bhd is the adviser, sponsor, underwriter, and placement agent for the IPO, while Eco Asia Capital Advisory Sdn Bhd is its financial adviser.