EGH International starts ACE trading at 14.5 sen, below offer price
The listing raised RM38.4 million through new shares, with proceeds earmarked for premises, expansion and repayment of borrowings.
Shares in EGH International Bhd opened at 14.5 sen on the ACE Market of Bursa Malaysia, putting the interior fit-out provider's debut price 9.38 per cent below its 16 sen initial public offering price.
The stock subsequently reached 12 sen before changing hands at 13.5 sen, a decline of 15.63 per cent from the offer price. Trading volume reached 52.85 million shares, while the company's market value at 13.5 sen was RM135 million.
The flotation raised RM38.4 million through 240 million newly issued shares. A further 120 million existing shares were offered for sale, valued at RM19.2 million. Both portions carried a price of 16 sen each. The Malaysian public's allocation of 50 million shares was oversubscribed by 2.63 times.
Proceeds will finance new premises in Puchong, Selangor: a head office, a warehouse and an Interior Premium Outlet showroom. Other uses include business expansion, repayment of borrowings, working capital and listing expenses.
EGH International is based in Puchong and provides fit-out, design, renovation and furniture supply services. Its projects include hotels, airport lounges and facilities serving healthcare and education.
