PETALING JAYA: Flexidynamic Holdings Bhd debuted on the ACE Market of Bursa Malaysia Securities Bhd yesterday, closing at 43 sen per share, a 23 sen or 115% premium over its 20 sen offer price with over 101.08 million shares traded.
The group is principally involved in the design, engineering, installation, and commissioning of glove chlorination systems, as well as the design and installation of storage tanks and process tanks for the glove manufacturing industry.
Flexidynamic shares had earlier opened at 69 sen, which is 245% above its IPO price of 20 sen. The group’s IPO shares allocated to the Malaysian public of 14.195 million new shares was oversubscribed by 155.72 times.
Managing director Tan Kong Leong said it has seen rubber-glove manufacturing activity growing significantly across the world during the Covid-19 pandemic. This increase in demand has led to the nearly full utilisation of production capacity among these manufacturers.
“We strongly believe that we can leverage off this increase in activity, which will benefit the group in the long-run. We have come a long way from when we first started with a rented factory located in Banting carrying out design, engineering, installation, and commissioning of on-line glove chlorination systems to what we are today, providing both on-line and off-line glove chlorination systems with a wide customer base not only from Malaysia but also Vietnam, Thailand, Indonesia, and Sri Lanka,” he added.
From the RM15.05 million in proceeds raised from the IPO, RM6.38 million will be used to repay bank borrowings drawn to fund the acquisition of new factories. A further RM0.42 million will be used for the renovation of these factories, while RM1.63 million has been allocated for the purchase of machinery and equipment. From the proceeds, another RM3.62 million will be allocated for working capital, with another RM3.0 million to be utilised for the estimated listing expenses.
Flexidynamic’s expansion includes building another two factories, which is expected to be completed by May 2021, with operations to start in the third quarter of the year. Both factories will have new machinery and equipment to carry out in-house manufacturing works and components for on-line glove chlorination systems.
“This listing of our group will strengthen our profile as one of the leading players in the glove manufacturing industry. It also marks a new phase for us and we believe that Flexidynamic can scale the heights to more growth.”
