KUALA LUMPUR: Cape EMS Bhd (Cape EMS) made a strong debut on the Main Market of Bursa Malaysia, opening at RM1.42, a 52 sen or 57.8 per cent premium over its initial public offering (IPO) price of 90 sen per share.
At the opening bell, the company saw 42.0 million of its shares traded.
The company is principally an investment holding company and is involved in electronics manufacturing services (EMS).
Its non-independent managing director and chief executive officer, Tee Kim Chin said Cape EMS is on track to expedite growth in the EMS industry to cater to the expected increase in demand for EMS services, based on the projected global growth of the semiconductor and electronics market.
Tee added that as at Jan 4, 2023, the company’s orderbook stood at RM358.7 million.
“The listing exercise successfully raised RM155.7 million through a public issue of 173.0 million new IPO shares,” she said at the company’s listing ceremony in Bursa Malaysia today.
Cape EMS has a market capitalisation of RM830.7 million, based on its enlarged share capital of 923 million shares.
Of the total proceeds, RM53.1 million (34.1 per cent) will be used for the construction of a new warehouse in Senai and installation of automated storage facilities, and RM62.8 million (40.3 per cent) for the setting-up of a new cleanroom facility and purchase of new automated production lines for EMS operations.
Meanwhile, the remaining balance will be used to defray listing expenses.
“We would like to increase our industry segment from the current 60 per cent to 70 per cent, driven by the demand from industry players,” she said.
The company serves customers from both the industrial and consumer sectors, mainly from the United States, Europe and Asia-Pacific.
— Bernama