KUALA LUMPUR: AGX Group Bhd made its debut on the ACE Market of Bursa Malaysia Securities today, opening at 41 sen per share, representing a premium of six sen or 17.14% above its initial public offering (IPO) price issue of 35 sen.
At the opening bell, the counter saw 6.87 million shares changing hands It closed at 36 sen on volume of 55.39 million shares.
The group is a third party logistics solutions provider, offering services encompassing sea and air freight forwarding, aerospace logistics, warehousing and road freight transport.
It raised RM33.78 million from the public issue of 96.5 million new ordinary shares.
Of the proceeds raised, it has allocated RM16.44 million or 48.7% for working capital, RM8.70 million or 25.8% for business expansion in Malaysia and South Korea via setting up new warehouses and offices in Penang and Johor Bahru as well as a new office in Busan, South Korea.
Meanwhile, RM4.5 million or 13.3% will be used to defray listing expenses and RM4.14 million or 12.2% is reserved for repayment of bank borrowings.
Executive director and group CEO Datuk Ponnudorai Periasamy disclosed that the group plans to set up a warehouse at Port of Tanjung Pelepas, situated about 21km from its Singapore warehouse.
He said that it would be a strategic move as the Johor Bahru–Singapore Rapid Transit System link is 65% complete.
“There's an MoU (memorandum of understanding) between Singapore and Johor for a special economic zone. So for us to have a warehouse there, will complement our Singapore operations,” he told reporters during a press conference after its listing ceremony.
At the same time, the group plans to set up a warehouse in Penang, given its “vibrant airport, seaport, semiconductor and manufacturing industries”.
“We have customers there, but we are not able to fully service them well because we don't have an office and a presence in northern Malaysia, so opening up in Penang is part of our plans.
“Finally, we also want to open up in Busan, South Korea. Right now, our South Korean office is very sea freight-based. Busan is a seaport, so for us to open up in Busan will help us be much closer to our customers and this will help us get new customers as well,” he added.
Touching on target markets, Ponnudorai said it has existing presence in five markets in Asean – Malaysia, Singapore, the Philippines, Myanmar and Cambodia.
“Its always been our ambition to be one of Southeast Asia's largest regional players. Indonesia, Thailand, Vietnam are large countries with large populations ... it will be something that we cannot afford to ignore. While we may not have immediate future plans, (albeit) we certainly have an eye on them,” he remarked.
TA Securities is the underwriter, principal adviser, sponsor and placement agent for AGX’s IPO.
