KUALA LUMPUR: Packaging product provider, DS Sigma Holdings Bhd (DS Sigma) made a strong debut on the ACE Market of Bursa Malaysia Securities Bhd, opening at 81 sen -- a 26 sen or 47 per cent premium from its initial public offering (IPO) price of 55 sen.
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 34.30 per cent of the proceeds to expand its operational facilities, and 31.91 per cent to purchase new machinery and equipment.
Another 2.27 per cent will be used to set up a packaging design and innovation centre, 11.96 per cent to repay bank borrowings, 10.79 per cent for working capital and the remaining 8.77 per cent for listing-related expenses.
Speaking to reporters 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.
-- Bernama