FoundPac debuts on main market at 61 sen
KUALA LUMPUR:FoundPacGroup Bhd made its debut on the Main Market of Bursa Malaysia at 61 sen, at a seven sen premium above its issue price of 54 sen.
The precision engineering parts fabricator and supplier, which had its public subscription shares oversubscribed by 14.21 times, saw 4.22 million shares changing hands at the opening bell.
As at closing, the stock's price rose to 66 sen, with 52.3 million shares traded.
“We are happy with the performance of our share price because the opening price of 61 sen is higher than what we expected,” said chief executiveofficer Lee Chun Wahat the press conference after the listing ceremony here.
The group aims to raise up to RM21.6 million from the initial public offering (IPO), which involved an offering of 40 million new ordinary shares of 10 sen each, as well as an offer for sale of 92 million shares undertaken by its major shareholder, FoundPac Holdings Sdn Bhd.
FoundPac is expected to have a market capitalisation of about RM199.8 million upon listing, based on the IPO price of 54 sen.
In its listing prospectus, the company said it planned to allocate RM8 million of the proceeds for the purchase of property, plant as well as equipment. Another RM3.6 million will be used for working capital, RM3 million for design and development efforts and RM4 million to establish sales offices in Milan, Italy and California, US.