Over 12.45 million of its shares were traded during the opening session.

DS Sigma’s IPO comprised the issuance of 91.18 million new ordinary shares, and the company expects to raise RM50.15 million from the exercise.

The company will utilise 34.3% of the proceeds to expand its operational facilities, and 31.91% to purchase new machinery and equipment.

Another 2.27% will be used to set up a packaging design and innovation centre, 11.96% to repay bank borrowings, 10.79% for working capital and the remaining 8.77% for listing-related expenses.

Speaking after the IPO listing ceremony here today, managing director Lucille Teoh Soo Lien said the setting up of the new plant will allow the company to serve its existing clients on time, expand its capacity to prepare for new clients and grow its base.

She added that DS Sigma is currently eyeing customers from the high-end market such as solar photovoltaic.

“We are not trying to mass produce products for everybody. We focus on certain customers and produce for them at their request,” she said.

Rakuten Trade had rated the company a “buy” at 55 sen with a target price (TP) of 80 sen.

“Buy with a TP of 80 sen based on 14 times price-to-earnings ratio (PER) over FY24 earnings per share.”

Public Investment Bank is DS Sigma’s principal adviser, sponsor and sole underwriter for the group’s IPO.