Greatech makes its debut on the ACE Market
By Digital News Asia June 14, 2019
- IPO price was US$0.15 per share, with listing market cap of US$91.74 million
- U$4.32 million will be utilised for business expansion & development
GREATECH Technology Bhd, an industrial automation solutions provider made its debut on the ACE Market of Bursa Malaysia Securities Bhd on June 13. The company began trading at 9am under the stock name GREATEC and stock code 0208.
Greatech’s initial public offering (IPO) price was US$0.15 (RM0.61) per share, with listing market capitalisation of US$91.74 million (RM381.86 million).
Greatech’s IPO attracted strong interest, with the offering to the Malaysian public being oversubscribed by 9.41 times.
Greatech raised approximately US$17.55 million (RM73.05 million) from its IPO where RM18 million will be utilised for business expansion & development and marketing activities, RM5 million respectively for capital expenditure and research & development (R&D) activities and RM36.55 million for working capital. The remaining proceeds of RM8.5 million will be used for repayment of bank borrowings and defrayment of IPO expenses.
[US$1 = RM4.1579]
Commenting on the listing, chief executive officer EK Tan said: We have grown from humble beginnings as a fabricator of machine parts and components into an industrial automation solutions provider serving top tier global clients. Industrial automation is inevitable and is rapidly changing the face of manufacturing.
“Having established a strong platform and international track record with brands such as First Solar and Panasonic, I am very confident that we will be able to tap into other opportunities from continuous adoption of industrial automation. Moving forward we are looking at bringing our automation solutions across industries and geographies.”
Greatech and its subsidiaries (the Group) are involved in the design, manufacturing, installation and commissioning of customised single automated equipment up to production line systems for industrial process automation.
The Group is backed by its in-house design and machining capabilities to customize unique solutions to fit clients’ requirements. For financial year ended Dec 31, 2018, the Group recorded revenue of RM219.58 million and profit after tax of RM31.72 million with approximately 90% of revenue derived overseas.
On June 10, 2019, the Group has reported its result for the first financial quarter ended March 31, 2019, with revenue of RM58.73 million and profit after tax of RM12.55 million, closing the quarter on a positive note and setting the pace for the financial year.
Alliance Investment Bank Bhd is the Principal Adviser, Sponsor, Sole Underwriter and Placement Agent for Greatech’s IPO.