SLGC shares fall below IPO price on ACE Market debut
The construction company raised about RM29.4 million, with proceeds earmarked for equipment, debt repayment and working capital.
SLGC Bhd (KL:SLG) shares traded at 25 sen at 9.10am on Oct 6 after starting their ACE Market debut at the IPO price of 28 sen. The stock touched 24.5 sen during early trading, with turnover exceeding 34 million shares.
At 25 sen, the Johor-based construction company's market capitalisation was about RM140 million. Retail investors had oversubscribed for its shares by just over three times before the listing, although another portion of the offering drew insufficient subscriptions and was reallocated.
The IPO generated about RM29.4 million for SLGC, while four shareholders selling part of their holdings received another RM17.64 million. They were managing director Yong Zheng Lin, his wife Chew Ka Yan, project director Liong Yang Herng and contract director Loo Chun Kok.
SLGC has earmarked RM9.2 million for construction equipment and machinery purchases. A further RM7.6 million is allocated to repayment of bank borrowings, while RM7.5 million will fund general working capital. The remaining proceeds are intended for listing expenses and software upgrades.
The G7-grade contractor provides design and construction services for residential and non-residential buildings, serving Malaysian property developers and building owners. At the listing ceremony, Yong said the company intended to strengthen its business, maintain discipline in its growth and improve delivery.
