KUALA LUMPUR: Jati Tinggi Group Bhd made its debut on the ACE Market of Bursa Malaysia at 30.5 sen, a 13% premium over its initial public offering (IPO) price of 27 sen a share.
As at 10.40am, the trading stock of the infrastructure utilities engineering company was up five sen or 18.52% to 32 sen, and was Bursa Malaysia’s most actively traded counter with 121.82 million shares exchanging hands.
In an IPO note, Rakuten Trade put out a “buy” call on Jati Tinggi with a fair vlue of 38 sen, which is a slight discount to its listed peers on Bursa Malaysia due to its smaller market capitalisation.
“Premised on its existing sizable orderbook, potential to be a key solution provider in the National Energy Transition Roadmap (NETR); gradual evolution into a main contractor, we expect Jati Tinggi to register core net earnings of RM5.6mil and RM10.8ml for FY23 and F24 respectively,” it said.
Rakuten said Jati Tinggi is gradually evolving from being a subcontractor into a main contractor, which will allow it to tender for larger projects and improve its profitability.
Jati Tinggi raised RM18.04mil from the IPO, from which RM7mil would go towards repaying bank borrowing and RM7.34mil for general working capital earmarked for new and existing prospects.
A further RM200,000 will be utilised for purchasing winch machines to suport business expansion and RM3.5mil for listing expenses.
“The journey to this listing has been a collaborative effort, driven by the hard work and dedication of our team. I extend my deepest appreciation to everyone involved in this journey,” said indeoendent non-executive chairman Datuk Mohd Aminuddin Mohd Amin in a statement.
TA Securities Holdings Bhd served as the principal adviser, sponsor, underwriter and placement agent for the IPO.
Source: The Star