KUALA LUMPUR: Steel Hawk Bhd
's share price doubled in value as it commenced trading on the ACE Market of Bursa Malaysia following an initial public offering (IPO) that raised RM13.5mil.
Shares in the oil and gas services and equipment provider jumped to 30 sen a share, a 100% increase over the IPO price of 15 sen a share
As at 10.15am, the share was trading at 36.5 sen after easing off an intra-morning high of 38.5 sen. With 84.05 million shares changing hands, Steel Hawk was the most actively traded security on the market.
Steel Hawk had previously announced it would utilise RM7mil of the IPO proceeds to construct an additional fabrication yard in Kemaman, Terengganu, to expand its overall fabrication capacity fivefold from an approximate 13 tonnes (MT) to approximately 65MT a month.
An additional RM2mil of the proceeds will be used to finance its working capital by purchasing raw materials such as piping, fittings, and structures.
Additionally, the group will allocate RM1mil for the repayment of bank borrowings while the remaining RM3.5mil will be used to cover the transfer of listing expenses.
Based on the IPO price of 15 sen per share and its enlarged issued shares of 490 million shares, Steel Hawk’s market capitalisation upon listing was about RM73.50mil.
