KUCHING: Integrated logistics services provider Tri-Mode System (M) Bhd (Tri-Mode) made its first appearance as a publicly listed company yesterday on the ACE Market of Bursa Malaysia Securities Bhd at a discount of 11 sen from its initial public offering price of 61 sen.
The company began trading at the opening of trading under the stock name TRIMODE stock code 0199.
“We have finally arrived at the final step of our initial public offering (IPO) exercise,” Tri-Mode group managing director Datuk Hew Han Seng said at the listing ceremony yesterday.
Tri-Mode’s IPO was well-received, with its retail tranche of 8.3 million new shares applied by the Malaysian Public registering an oversubscription of 3.74 times.
Through its IPO, Tri-Mode has successfully raised total proceeds of RM26.4 million from its public issue, of which approximately 58.8 per cent of the proceeds will be utilised for the company’s business expansion, which includes the construction of a proposed headquarters and distribution hub, and purchase of prime movers and trailers.
Approximately 8.9 per cent of the proceeds will be utilised as working capital, and a further 19 per cent of the proceeds will be utilised for the repayment of bank borrowings.
The balance of 13.3 per cent of the proceeds will be utilised to defray the company’s listing expenses.
“I would like to take this opportunity to extend my greatest thanks to Bursa Securities and the Securities Commission Malaysia for their mindful evaluation, and to everyone who has contributed to Tri-Mode’s success thus far,” Hew added.
TA Securities Holdings Bhd is the principal adviser, sponsor, managing underwriter, joint underwriter and placement agent, while Kenanga Investment Bank Bhd is itsjoint underwriter and ZJ Advisory Sdn Bhd is its financial adviser.
Source: Borneo Post Online