It opened at 43 sen a share with almost 10 million shares changing hands.

The HE Group initial public offering (IPO) was oversubscribed 63.35 times.

Managing director Haw Chee Seng said the funds raised from the IPO would be utilised to underwrite the company’s expansion plans.

This comprises its transformation into a single-point-of-contact mechanical, electrical and process utility engineering service provider.

“This will enable us to be competitive when bidding for large industrial and commercial projects,” Haw said in a statement to the media after the market opened today.

The company will also open new offices in Kulim and Johor Bahru. Both are set to be operational next year.

“We aim to strengthen our presence in these regions and generate more business opportunities,” Haw said.

Among others, HE Group provides power distribution systems to industries such as semiconductor, medical devices and electronics.

For the financial years 2020 to 2022, the company’s revenue grew from RM31.39 million to RM107.57 million for a compounded annual growth rate (CAGR) of 85.13%.

“We anticipate our expansion plans, as well as our status as a listed entity, to further improve our financial strength and contribute to sustained growth in the future,” Haw added.

HE Group raised RM24.33 million from the IPO.

A total of 62.19% of the proceeds will be used to supplement its working capital requirements. The company has allocated RM3.65 million (15%) for its business expansion, RM3.8 million (15.62%) for listing expenses, and the remaining RM1.75 million (7.19%) for capital expenditure.

Alliance Islamic Bank Bhd is the principal adviser, sponsor, sole underwriter and placement agent for the listing exercise.