GB Bond falls below IPO price after ACE Market debut
The adhesive maker traded at 24.5 sen at 9.15am, with more than 32 million shares changing hands.
GB Bond Holdings Bhd opened its ACE Market trading debut on Oct 1 at 25.5 sen before dropping below its IPO price of 25 sen per share. By 9.15am, the stock stood at 24.5 sen on turnover exceeding 32 million shares.
At that price, the industrial adhesive manufacturer had a market capitalisation of RM101 million. The public allocation of its IPO was oversubscribed eight times, although another portion drew insufficient subscriptions and required a clawback and reallocation.
The offering generated nearly RM27 million, with RM16.1 million going to the company. Managing director Datuk Gooi Ching Koay received RM10.7 million through the sale of existing shares alongside the IPO.
GB Bond has allocated RM5.5 million towards renting a new factory close to its Bukit Panchor headquarters in Penang and buying machinery to expand production capacity. A further RM3.5 million is earmarked for a Vietnam sales office and warehouse.
The company intends to use the remaining funds for marketing, working capital and listing costs. Its products include adhesives, sealants and related materials for applications ranging from packaging and fabric lamination to woodworking, renovation, building materials and construction.
Malacca Securities handled the IPO as principal adviser and sponsor, alongside its underwriting and placement-agent roles.
