KUALA LUMPUR: Air cargo transport specialist Sin-Kung Logistics Bhd made its debut today on the ACE Market of Bursa Malaysia at 13 sen, which is its initial public offering (IPO) price.

The counter’s flat debut came on volume of 26.36 million shares. The counter increased to 13.5 sen after 114.05 million shares were traded. It closed at 14 sen, up 1 sen or 7.7%, on volume of 394,072 million shares.

Sin-Kung Logistics is involved in the provision of trucking services with a focus on airport-to-airport road feeder service.

“The rapid growth of e-commerce post-pandemic, disruption in ocean shipping and supply diversification are some of the main drivers of air cargo demand in the current market,” Sin-Kung Logistics managing director Alan Ong said at the company’s listing ceremony.

He said the company has managed to grow the fleet of commercial vehicles to 461 units and the listing will enhance its capacity and competency to stay at the forefront of the industry.

The company is funding the expansion of commercial vehicles, warehousing and distribution business with part of the RM26 million raised from the IPO.

“Sin-Kung Logistics strategy in growth-continuation of trucking and container haulage businesses is to purchase 100 commercial vehicles by 2025. This is to expand our capacity for the transportation of more cargoes and containers,” said Ong.

Sin Kung Logistics also plans to utilise RM10 million in funding its warehousing distribution services’ expansion to meet the upcoming rising demand from the e-commerce and manufacturing sectors.

A total of RM9.6 million will be used to repay bank borrowings, RM1.1 million for working capital and the remainder of RM3.3 million is for estimated listing expenses.

With the enlarged share capital of 1.2 billion shares, Sin-Kung Logistics will have a market capitalisation of RM156 million post-listing.

“The Red Sea crisis and e-commerce boom have somehow benefited Sin-Kung Logistics. We are well-positioned to secure more jobs as our airport-to-airport road feeder services, covering extensive networks of airports,” Ong said.

Meanwhile, Bursa Malaysia Securities business acceleration director Zulkifli Mustafa said Sin-Kung Logistics is set to achieve the targeted market capitalisation, based on the issued share capital of 1.2 billion shares and an IPO price of 13 sen per share.

“The joining of Sin-Kung Logistics marked the 15th IPO of the year. The IPO market capitalisation has witnessed a 61% increase, underscoring the resilience of our marketplace,” he added.

Zulkifli said the logistics and warehousing sector plays a crucial role in the progress, facilitating the movement of goods across both domestic and international channels. The sector’s efficiency is vital to support a wide range of industries in ensuring smooth operations, he added.

“I commend Sin-Kung Logistics for achieving an exceptional subscription rate of over 26 times. This appears as a clear indicator of strong investors’ confidence in the company,” Zulkifli remarked.