KUALA LUMPUR (Nov 18): PMW International Bhd (KL:PMW) ended its first day on the ACE Market with a small gain of half a sen or 1.47% at 34.5 sen, against its initial public offering (IPO) price of 34 sen per share, amid subdued broader market conditions.

The Perak-based concrete products manufacturer opened flat at 34 sen in the morning and slipped to an intraday low of 32 sen before closing in positive territory. A total of 102.93 million shares were traded throughout the day.

At the last price of 34 sen, the company has a market capitalisation of RM307.8 million.

The country’s benchmark index FBM KLCI slipped and a gauge that tracks ACE Market stocks also declined. Shares of PMW International were oversubscribed by nearly 32 times by public investors during its IPO.

PMW International manufactures and sells pre-stressed concrete products, including spun concrete poles, piles and related items. The company also produces moulds, machinery and lighting products for the power, telecommunication and construction sectors in Malaysia and abroad.

Based in Lahat, Perak, PMW also has manufacturing facilities in Sabah.

The IPO raised close to RM91 million, of which RM60.66 million were for PMW International from the public issue of new shares and the remaining RM30.33 million went to its selling shareholders from the sale of existing shares.

Nearly 78% of the proceeds from the public issue will support expansion, including the construction of a new facility in Tanjung Manis, Sarawak, to manufacture spun poles and piles to better serve customers in East Malaysia and tap into growing infrastructure opportunities in Sabah and Sarawak.

The remainder will be used to purchase new machinery and equipment, and as working capital.

Proceeds from the offer for sale, meanwhile, went to chief executive officer Lee Hon Hwa and his siblings Khim Hwa and Siew Yoke as well as Richard Lee, who is in charge of overseeing PMW’s Sabah operations.

Khim Hwa is the executive director responsible for business development while Siew Yoke is the chief human resources officer.

KAF Investment Bank is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.

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