Enest ends first ACE Market day below IPO price
Enest Group Bhd saw its share price drop 20% on its first day of trading on the ACE Market following a transfer from the LEAP Market. The company raised RM15 million through its IPO, which saw weak demand from public investors.
Why it matters
The poor market debut highlights investor caution regarding small-cap companies transferring from emerging boards to the ACE Market.
BURSA SGX Home New Listing Make The Edge Malaysia your preferred source on Google KUALA LUMPUR (July 15): Enest Group Bhd (KL: ENEST ) fell in its first trading day on the ACE Market following the bird's nest company's listing transfer from the LEAP Market.
The stock started at 13 sen on Wednesday, unchanged from its initial public offering (IPO) price. The stock edged up to 13.5 sen briefly before ending the day at 10.5 sen, down 2.5 sen or 20% from its IPO price, after more than 79 million shares exchanged hands.
Market capitalisation stood at RM61 million based on the closing price.
The decline follows weak demand for its shares ahead of the listing. Enest’s IPO was only oversubscribed fewer than two times by public investors while shares set aside for select investors had to be clawed back and reallocated.
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