SumiSaujana Makes Lacklustre Debut On Ace Market
KUALA LUMPUR, April 9 (Bernama) -- SumiSaujana Group Bhd made a lacklustre debut on Bursa Malaysia’s ACE Market today amid the continuing global market uncertainty caused by a US-led tariff conflict.
The oil and gas (O&G) specialty chemicals manufacturer opened at 18 sen, 25 per cent lower than its initial public offering (IPO) price of 24 sen per share.
Despite the weak performance, SumiSaujana’s executive deputy chairman Toh Chee Seng defended the timing of the listing, stating that market conditions were never predictable.
“Historically, data shows that no one can accurately time the market. So there's never a good or bad time to list a company,” he said at a virtual press conference in conjunction with the listing.
He said that despite the slump, SumiSaujana is confident in its business strategy and is focused on moving forward with its plans for growth and expansion.
“With the IPO proceeds, we can streamline operations, improve logistics management by acquiring a new corporate office and warehousing facilities, which will bring significant savings to our bottom line and, hopefully, create long-term value for our stakeholders and customers,” he said.
SumiSaujana raised about RM74.4 million from the public issuance of 310 million new shares.
The company has allocated 54 per cent of the proceeds for acquiring a new warehouse and corporate office in Puncak Alam, while 25.4 per cent will be used for acquiring its existing factory, also located in Puncak Alam.
Meanwhile, SumiSaujana executive director and chief executive officer Norazlam Norbi said the company remains confident in the long-term growth of the O&G industry.
“Year on year, there is a consistent 1 to 3 per cent growth in the usage of hydrocarbons, whether as energy or petrochemicals, and as a result, we expect steady growth in the oilfield specialty chemicals market,” he said.
-- BERNAMA