Construction firm SLGC opens flat then dips in ACE Market debut
Construction firm SLGC Bhd closed its first day of trading on the Malaysian ACE Market at 25 sen, falling below its IPO price of 28 sen. The company raised approximately RM29.4 million through the listing to fund machinery acquisition and debt repayment.
Why it matters
The underperformance of the IPO reflects current investor sentiment toward the construction sector and the broader Malaysian equity market.
BURSA SGX Home New Listing Make The Edge Malaysia your preferred source on Google KUALA LUMPUR (Oct 6): SLGC Bhd (KL: SLG ) ended its first trading day on the ACE Market below its initial public offering (IPO) price.
The construction firm’s shares closed at 25 sen on Tuesday, three sen or 10.71% lower than the IPO price of 28 sen per share, after hitting an intraday low of 24 sen as more than 83 million shares exchanged hands.
At the closing price, the company based in Johor had a market capitalisation of RM140 million.
Ahead of the listing, SLGC shares were oversubscribed by just over three times by retail investors, while a portion of the IPO was undersubscribed and had to be reallocated to other investors.
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