KUALA LUMPUR: Construction company TCS Group Holdings Bhd made a strong debut on the ACE Market on Thursday, opening at 58.5 sen or 35.5 sen above its offer price of 23 sen.
There were 19.32 million shares done.
At 9.03am, it was trading at 57.5 sen, up 22 sen. There were 44.85m shares done at prices ranging from 57 sen to 60.5 sen.
The FBM KLCI was up 0.14 points or a mere 0.01% to 1,587.12. Turnover was 851.36 million shares valued at RM240.81mil. There were 267 gainers, 96 losers and 263 counters unchanged.
As of April 30, its orderbook was RM463mil and it will last the group till 2023.
Its managing director Datuk Tee Chai Seng said the group was delighted to be entering a new and exciting chapter of its corporate journey.
“Going public is a significant milestone for us. From here on, the journey continues as this is just the beginning of our next chapter of growth.
“With the listing proceeds raised, we can now accelerate the execution of our future plans in expanding our foothold in the high-rise, purpose-built and institutional buildings segments.
“Another priority for us is to form a new infrastructure project team to expand our infrastructure construction services to capitalise on the opportunities arising from Government measures and economic stimulus packages,” he said.
“We are confident that TCS’ prospects in the building construction industry remain favourable, backed by the implementation of various government measures and economic stimulus packages to strengthen the Malaysian economy, our competitive strengths and continuous efforts in expanding our services and capabilities,” he said.
Tee said the group would continue to focus on tendering for building and infrastructure construction projects in both the private and public sectors
The company’s listing exercise entailed a public issue of up to 90 million new ordinary shares, representing 25% of its enlarged total number of shares, and an offer for sale of up to 18 million existing shares at an issue price of 23 sen apiece.
Its initial public offering of 90 million new shares to the public was oversubscribed by 33.39 times. It had received a total of 5,825 applications for 371.4 million shares with a value of RM85.4mil.
TCS raised RM20.7mil from the IPO. Upon listing, the group will have a market capitalisation of RM82.8mil based on the IPO price.