Year-to-date, Glostrext’s initial public offering (IPO) was the second highest on Bursa Malaysia, trailing only TT Vision Bhd’s remarkable 338.24% opening premium.
With an increased share count of 407.04 million, the company’s anticipated market capitalisation is set to reach RM77.34 million.
As at 4.06pm, the counter was the second-most actively traded stock on Bursa with about 276.9 million shares exchanging hands.
Its share price, however, has retreated to 27 sen, a 42.1% increase from its reference price.
Glostrext provides piling, structural and geotechnical related services, covering instrumentation, testing and monitoring services to construction projects as well as completed buildings and infrastructure.
On revenues, 64.33% comes from Singapore while 35.01% originates from Malaysia.
The company did not declare any dividend according to its prospectus.
Managing director Lee Sieng Kai said Glostrext’s listing will provide the company with increased financial flexibility to actively pursue potential growth prospects and elevate its standing in the corporate entity.
Anticipating total gross proceeds of RM20.1 million from the IPO, Glostrext intends to allocate RM11.7 million (58.2%) of the raised funds to enhance working capital and extend its structural and ground instrumentation as well as monitor operations into the Singaporean market.
Other usage proceeds include RM1.8 million (8.95%) for research and development, RM3.3 million (16.41%) for repayment of bank borrowings and RM3.3 million (16.41%) for listing expenses.
Glostrext’s IPO involves the issuance of 105.83 million new shares, which constitute 26% of its expanded share capital.
Out of the total issued shares, 20.35 million shares are earmarked for the Malaysian public, while 10.18 million shares will be allocated to eligible directors, employees, and individuals who have played a role in Glostrext’s achievements.
For the first quarter ended June 30, 2023 (Q1 FY2024), the company achieved a net profit of RM1.46 million, bolstered by a revenue of RM6.43 million.
The company disclosed a net profit of RM4.12 million, supported by a revenue of RM21.67 million for FY 2023.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the group’s IPO.