PETALING JAYA: Cosmos Technology International Bhd, an integrated technology solutions provider for the water and wastewater and oil and gas industries, made its debut on the ACE Market of Bursa Malaysia Securities Bhd today at an opening price of 50 sen, representing a premium of 42.9% over its initial public offering (IPO) price of 35 sen.
The IPO exercise received a good response from investors, with 12.83 million Cosmos shares made available for the Malaysian public being oversubscribed by 58.01 times.
Managing director Datuk Chong Toh Wee said it made a “leap” from the LEAP Market to the ACE Market, a milestone that will spur the company to work even harder to pursue growth strategies.
“With the funds raised from this listing, we will now be able to accelerate our efforts in streamlining and consolidating our operations, automating our production processes, and boosting our efficiency and productivity levels. We believe these efforts will strengthen Cosmos’ competitive advantage and position the company for future growth,” he added.
Of the total RM22.44 million in gross proceeds that Cosmos has raised from its listing on the ACE Market, RM10 million has been earmarked to finance its acquisition of a semi-detached building that houses a factory, office and warehouse in Balakong, Selangor. The acquisition is part of the company’s move to streamline and consolidate its operations.
Separately, RM3.5 million will be used for the purchase of new machineries to be located in the new building to expand the company’s manufacturing operations, while RM1.5 million will be used for the repayment of bank borrowing and RM4.44 million for working capital. The remainder will be used to defray the company’s listing expenses.
“There are many opportunities available for Cosmos to grow more quickly than we think possible.
The outlook remains highly optimistic for our business over the next few years because of the robust demand for electronic flowmeters from the water and wastewater industry in Malaysia with further digitalisation and automation in monitoring the waterways of our country. Furthermore, we expect strong demand for our fabricated metal products, which are used in the oil and gas sector as crude oil prices remain at attractive levels,” Chong explained.
With a track record that spans 18 years in delivering quality products and services, the company is in a good position to ride on these opportunities. Chong expects demand for its products and services to continue growing in the years ahead, with orders coming from existing and new customers.
“With this new listing status, we expect to gain even more recognition in both the domestic and international markets. This goes to further enhance our corporate image and brand reputation, and ease the path for us to expand our customers’ base and market shares.”
