Building material wholesaler Unitrade Industries Bhd made its ACE Market debut at 26.5 sen on Bursa Malaysia today, 17.19% lower than its initial public offering (IPO) price of 32 sen
The stock is categorised under the Industrial Products and Services sector and carries the stock name of UNITRAD and stock code of 0247. Unitrade opened at RM0.265 with an opening volume of 13.8 million shares.
The Selangor-based industry incumbent raised a total of RM100.0 million from the public issue under its initial public offering (“IPO”), of which RM50.5 million or 50.5% will be deployed as working capital.
Another RM39.8 million or 39.8% shall go towards repayment of bank borrowings. Meanwhile, RM5.0 million or 5.0% will be allocated for capital expenditure to set up a pipe fabrication centre, and the balance of RM4.7 million or 4.7% has been earmarked to defray listing expenses.
In a statement, Managing Director of Unitrade, Mr. Nomis Sim Siang Leng said, “We are extremely delighted with our successful listing on the ACE Market of Bursa Securities. This is a significant milestone in our 43 years of corporate journey, and definitely an indelible moment for us. Propelled by the new listing status and fresh funds raised, we look forward to embarking on an exciting next phase of growth.”
“With the recent relocation to a warehouse double the size of our previous one, coupled with the IPO proceeds raised, we now have the capacity and capability to increase our inventory volume and product range to meet the escalating demand for building materials from the construction sector. In addition, we will be among the first in Malaysia to build a new pipe fabrication centre to broaden our value-added service offerings to our customers.
This facility will provide a long list of benefits to our customers, such as manpower reduction, acceleration of construction progress, and more efficient use of space at construction sites, to name a few.”
“On a macro view, we are upbeat on the building materials industry which is buoyed by the acceleration and roll-out of major infrastructure projects. We have an established track record in supplying to large scale projects in the past and hence, we are confident in capitalising on these opportunities. Besides new projects, our products are heavily used in refurbishments, retrofitting, repair and maintenance works as well.
As such, Unitrade plays a critical and holistic role in supporting the full lifecycle of buildings and infrastructures.”
In its recently announced results for the financial year ended 31 March 2022 (“FY2022”), Unitrade registered revenue of RM1.29 billion and a record-breaking profit after tax and non-controlling interest (“net profit”) of RM43.2 million.
Unitrade has a dividend policy where the Board of Directors intends to distribute dividends of up to 30% of its annual net profit to its shareholders.
