KUALA LUMPUR: Feytech Holdings Bhd commenced trading on the Main Market of Bursa Malaysia to strong buying support after the public portion of its initial public offering (IPO) was oversubscribed 15.64 times.
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At 9am, the shares of the automotive cover and seat manufacturer were bought up to RM1.10, representing a 30 sen or 37.5% increase over its IPO price.
The counter stood at RM1.08 a share at 9.18am after 69.35 million shares changed hands.
Feytech’s IPO involved 252.94 million shares, including an offer for sale of 109.62 million, at 80 sen apiece.
Based on the group’s enlarged capital of 843.20 million shares and IPO price, its market capitalisation, upon listing, was RM674.56mil.
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The IPO raised gross proceeds of RM114.16mil, of which 28.5% was allocated for acquiring land and constructing its new Tanjong Malim plant and 6.4% for the construction of its new Kulim Plant 2.
Of the total, RM52.18mil will be used to finance working capital and RM3mil for the purchase of new machinery.
In the financial year ended Dec 31, 2023, Feytech saw its profit after tax rise 59.01% year-on-year (y-o-y) to RM43.88mil, while its revenue increased 66.48% y-o-y to RM211.22mil.
-TheStar