Edelteq sizzles in debut, opens at 75 sen for 212.5% premium
Penang-based Edelteq Holdings Bhd, which provides engineering support for integrated circuit (IC) assembly and test processes in the semiconductor industry made a sizzling debut on the ACE Market of Bursa Malaysia Securities yesterday.
Edelteq’s share price opened at 75 sen, representing a premium of 51 sen or 212.5% over the issue price of 24 sen, with an opening volume of 9.01 million shares. The stock closed at 73 sen, 49 sen or 204.2% over the issue price. Volume totalled 104,5 million shares.
Executive director and group CEO Chin Yong Keong said, “Today’s listing represents a major achievement in our corporate journey, and we are thrilled with the response from our investors. We see this as a vote of confidence in our business and our potential for future success. Moving forward, we are committed to driving our group to new heights, further cementing our market position in the semiconductor industry.”
Armed with the fresh funds raised from our IPO, he added they are excited to implement their expansion plans.
“Our new Batu Kawan factory, which is expected to be operational in March 2024, will expand our production capacity and meet the growing demand for our products and services. We will also undertake research and development activities to develop new products, refurbishment methods and factory automation solutions that enhance our customers’ cost effectiveness and operating efficiencies,” he said.
Chin said Edelteq is confident of expanding its product and service offerings to meet the evolving needs of the semiconductor industry and attract new clients regionally.
In the financial year ended Dec 31, 2022 (FY22), Edelteq achieved a net profit of RM5.4 million on a revenue of RM24.4 million. Based on its recently released first-quarter results ended March 31, 2023, Edelteq recorded a net profit of RM3 million on revenue of RM9.8 million.
The group has set a target to distribute up to 20% of its annual profit after tax attributable to the shareholders of the group.
Edelteq raised RM24 million from the public issue of its IPO. The group has allocated RM3.7 million for the construction of its Batu Kawan factory and RM3.4 million as working capital. A further RM3.1 million will be used for R&D activities, RM10.3 million for the repayment of bank borrowings, with the balance RM3.6 million for listing expenses.
UOB Kay Hian Securities (M) Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.