Volcano ‘erupts’ on ACE Market 06 Apr 2021 / 19:45 H.
KUALA LUMPUR: Volcano Bhd, an international manufacturer of nameplates and plastic injection moulded parts, closed at 48.5 sen on its maiden trading day on Bursa Malaysia’s ACE Market yesterday, a 36.8% or 13.5 sen premium over its offer price of 35 sen with 104.46 million shares changing hands.
Earlier in the trading session, the counter hit a high of 70.5 sen, slightly more than double of its offer price.
Executive director and chief financial officer Khoo Boo Wui said proceeds from the listing will be used to accelerate the company’s factory expansion to accommodate new machinery.
“We plan to have additional laser-cutting machine and plastic injection moulding machines. We will expand our factory size to accommodate the new machinery, the existing spaces come in optimum level,” he said at a virtual press conference after the listing ceremony yesterday.
KUALA LUMPUR (April 6): Shares in nameplates and plastic injection moulded parts manufacturer Volcano Bhd jumped as much as 101% during early trade to hit an intraday high of 70.5 sen, marking a strong debut on Bursa Malaysia’s ACE Market.
The stock, which jumped right to 70 sen after the opening bell – double that of its Initial Public Offering (IPO) price of 35 sen – subsequently pared some gains to close the day at 48.5 sen, still 13.5 sen or 38.57% above its issue price.
In a statement earlier, Volcano highlighted that its IPO was oversubscribed by 176.6 times.
It intends to raise RM8.75 million, of which RM5.55 million will be used for the purchase of machinery and equipment, while RM3.2 million will be used for listing expenses.