Firm debut for CEKD (0238) CEKD BERHAD amid cautious market
KUALA LUMPUR: Die-cutting solutions provider CEKD Bhd made a firm debut on the ACE Market on Wednesday and its shares rose to a high of 62 sen amid a cautious broader market.
At 9.30am, its share price was trading at 55.5 sen, or 7.5 sen above its offer price of 48 sen.
There were 48.73 million shares done at prices ranging from 54.5 sen to 62 sen.
The FBM KLCI was down 15.56 points or 1.01% to 1,531.26. There were 171 gainers, 463 losers and 335 counters unchanged.
The listing involves the issue of 50.59 million new shares at an issue price of 48 sen apiece.
The shares were made available via the issue of 9.73 million new shares to the Malaysian public, 9.73 million new shares to eligible directors, employees and persons who have contributed to the success of the group, 6.81 million new shares to be privately placed with selected investors, and 24.32 million new shares to be privately placed with Bumiputera investors.
Under its IPO, its public portion was oversubscribed by 131.61 times.
CEKD raised RM24.28mil from the IPO exercise. From the proceeds, the group will use RM8.8mil for the acquisition of a factory for Hotstar, RM3mil for purchase of new machinery, RM1.3mil for upgrade and development of computer software and servers and RM4mil for repayment of bank borrowings.
CEKD’s principal market is mainly in Malaysia which contributed 85.6% of overall revenue in its financial year ended Aug 31, 2020.
CEKD’s customers are mainly from the paper printing and packaging, electrical and electronics, automotive, plastic packaging, textile and leather industries.
https://www.thestar.com.my/business/business-news/2021/09/29/firm-debut-for-cekd-amid-cautious-market
