PETALING JAYA: Enterprise IT services provider TechStore Bhd made its debut on the ACE Market of Bursa Malaysia Securities today, with its shares opening at 25.5 sen, a premium of 27.5% over the issue price of 20 sen.
The stock closed at 22 sen, 2 sen or 10% above the IPO price. A total of 262.831 million shares were traded.
TechStore’s market debut followed an initial public offering (IPO) that was 96.7 times oversubscribed, reflecting strong investor confidence in its business operations and potential for growth.
Managing director Tan Hock Lim said, “Today is a momentous day for TechStore as we officially list on the ACE Market of Bursa Securities. The warm reception from investors and the market is truly humbling, and we are deeply grateful for the trust placed in us. This achievement reaffirms that our strength lies in our ability to localise and deliver customised, innovative IT security and automation solutions, particularly in the transportation sector, where efficiency and reliability are paramount.”
He added that alongside an unbilled order book of RM104.7 million and a tender book of RM647.2 million as at Dec 31, 2024, the RM25 million proceeds from the IPO will fuel the company’s next phase of growth.
“We plan to expand our business development team and invest in additional equipment, as well as IT hardware and software, to strengthen our technology capabilities. We are also establishing a branch office in Johor Bahru to enhance our project delivery in the Singapore-Malaysia RTS Link project, expand our geographical presence and grow our brand. These plans will not only reinforce our core competencies but also position us for sustained growth,” said Tan.
He also said the expansion comes just at the right time as the demand for IT enterprise services is rising, supported by the digital economy and Malaysia’s growing reputation as a strategic investment hub.
“As industries shift towards smarter, tech-driven solutions, TechStore is well-positioned to capitalise on the opportunities ahead, remaining committed to delivering innovative and value-added solutions that turns our customers’ vision into reality.”
Of the RM25 million raised from the IPO, TechStore has allocated RM11.5 million (45.9%) for working capital purposes; RM2.7 million (10.9%) for the recruitment of business development personnel; and RM2.3 million (9.2%) for capital expenditure on equipment, computer and hardware, and IT software, as well as a new branch office in Johor Bahru. The remaining proceeds are earmarked for repaying bank borrowings and defraying estimated listing expenses.
On Feb 13, TechStore announced revenue of RM23.5 million with a net profit of RM2.8 million, which included one-off listing expenses of RM200,000 for the fourth quarter ended Dec 31, 2024.
For the full year, revenue stood at RM62.3 million while net profit was at RM6.3 million, inclusive of one-off listing expenses of RM900,000 incurred.
M&A Securities Sdn Bhd is the adviser, sponsor, sole underwriter and placement agent for TechStore’s IPO.
