Muar -based furniture specialist Ecomate Holdings Bhd made its stylish debut on the ACE Market on Monday after hitting a high of 70.5 sen, marking 37.5 sen or an increase of 113.64% over the initial public offering (IPO) price of 33 sen.
During the opening session, the stock was valued at 35 sen or 106.06% higher at 68 sen which gave it a market capitalization of RM176.75 million.
At 9.40am this morning, the counter had partially cut its gains and traded 17.5 sen or 53.03% higher at 50.5 sen with 58.18 million shares changing hands marking it as the top stock actively traded on the local bourse.
Established in 2016 in Muar, Johor, Ecomate is an export -oriented furniture manufacturer that focuses on the production of ready -to -assemble (RTA) furniture products where they also design, manage production and conduct their own marketing and sales activities.
According to sources from Ecomate, they aim to raise RM16.2 million from the IPO implementation and plan to allocate the proceeds to acquire machinery and equipment (RM6 million), construction of its third plant which will house three additional production lines and a four -storey semi -detached building block as a hostel. (RM2 million) as well as the purchase of raw materials (RM5.3 million).
Meanwhile, the remaining RM2.9 million will be allocated to fund the estimated listing expenses.
In a separate statement today, Ecomate sources explained they believe a strong business model and efficient management have put Ecomate in a strong position to get more of the growth opportunities needed in the RTA segment of the furniture industry.
He added that the proceeds from the IPO were timely as it enabled them to implement the growth strategies they had planned.
Ecomate is seen on the best track in spreading their wings as e-commerce activity seems to be getting stronger in recent times as many consumers choose to shop online during the economic closure measures implemented around the world so RTA furniture purchases are expected to remain buoyant.
