Cosmos Technology International Berhad made its debut on the ACE Market of Bursa Malaysia Securities Berhad today at an opening price of RM 0.50, representing a premium of 42.9% over its Initial Public Offering price of RM0.35.
The IPO exercise had received a good response from investors, with 12.83 million Cosmos shares made available for the Malaysian public being oversubscribed by 58.01 times.
Managing Director of Cosmos Technology International Berhad, Dato’ Chong Toh Wee, said, “We are proud to make history today by making a successful ‘leap’ from the LEAP Market to the ACE Market. This is a significant milestone that will spur us to work even harder to pursue our growth strategies in order to elevate Cosmos to greater heights.
Of the total RM22.44 million in gross proceeds, Cosmon has earmarked RM10 million to finance its acquisition of a semi-detached building that houses a factory, office, and warehouse in Balakong, Selangor. The acquisition is part of the Company’s move to streamline and consolidate its operations.
Separately, RM3.50 million will be used for the purchase of new machineries to be located in the new building to expand the Company’s manufacturing operations, while RM1.50 million will be used for the repayment of bank borrowing and RM4.44 million for working capital. The remainder will be used to defray the Company’s listing expenses.
“There are many opportunities available for Cosmos to grow more quickly than we think possible.
“The outlook remains highly optimistic for our business over the next few years because of the robust demand for electronic flowmeters from the water and wastewater industry in Malaysia with further digitalisation and automation in monitoring the waterways of our country. Furthermore, we expect strong demand for our fabricated metal products, which are used in the oil and gas sector as crude oil prices remain at attractive prices,” Dato’ Chong explained.
“With a proven track record that spans 18 years in delivering quality products and services, the Company is in a good position to ride on these opportunities. We expect demand for our products and services to continue growing in the years ahead, with orders coming from existing and new customers,” Dato’ Chong said.
At the listing ceremony, Dato’ Chong thanked Bursa Malaysia Securities Berhad and the Securities Commission Malaysia for their approvals and guidance for the listing exercise. He also expressed his appreciation to Mercury Securities Sdn Bhd and Cosmos’ group of advisors for their unwavering support of the Company’s listing.
Mercury is the Principal Adviser, Sponsor, Underwriter and Placement Agent of Cosmos’ IPO.
