PETALING JAYA: Specialty chemicals manufacturer SumiSaujana Group Bhd, the fifteenth initial public offering (IPO) on Bursa Malaysia this year, made a lacklustre debut on the ACE Market in Kuala Lumpur today.
The counter failed to impress in its first trading day, opening at 18 sen or 25% below its IPO price of 24 sen per share. It closed at 18 sen, after touching an intraday low of 16.5 sen and a high of 19 sen.
The company’s IPO oversubscribed by 1.85 times ahead of the listing. It offered 310 million new shares and up to 90 million existing shares, representing 27.71% of its enlarged issued share capital.
SumiSaujana executive deputy chairman Toh Chee Seng said the group remains focused on its long-term strategy despite current market conditions.
“Nobody can time the market accurately. Historically, data shows that to be true. For us, it’s about moving forward with our business plan,” he said at a press conference after the listing ceremony.
Toh said becoming a listed company provides them with a solid foundation to scale new heights in the oil and gas specialty chemicals industry.
“This IPO allows us to strengthen our infrastructure, deepen customer relationships, and pursue strategic expansion in key international markets. We are committed to delivering long-term value to our stakeholders by continuously enhancing our capabilities and sustaining our competitive edge in the industry.”
Toh said the group remains optimistic about overseas growth in the Middle East and North America.
“We are still quite gung-ho about our expansion plan, despite the current tariff imbalance. The dust will settle eventually, maybe in weeks, maybe in months.”
He noted that while Malaysia has experienced slower drilling activity in recent years, there has been a pickup in the Americas, Middle East and Africa.
“One region may slow down, but another picks up. We believe the market remains at a stable level overall.”
Through its IPO, SumiSaujana raised RM74.4 million, with RM40.2 million to be used for the acquisition of a new warehouse and corporate office in Puncak Alam, consolidating the group’s operational and warehousing facilities.
Another RM18.9 million has been allocated for the acquisition of its existing factory in Puncak Alam to ensure long-term operational stability.
The group will also spend RM2.08 million on capital expenditure, including the purchase and installation of information technology infrastructure and a solar photovoltaic system. In addition, RM7.62 million will go towards the establishment of a research and development laboratory, while RM5.6 million has been set aside for listing-related expenses.
RHB Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for SumiSaujana Group’s IPO.
