EGH International debuts on ACE Market at 9.38pct discount

KUALA LUMPUR: EGH International Bhd made a weak debut on Bursa Malaysia's ACE Market today, opening at 14.5 sen, a 9.38 per cent discount to its initial public offering (IPO) price of 16 sen.

The interior fit-out services provider's shares fell as low as 12 sen before trading at 13.5 sen, still down 15.63 per cent, with 52.85 million shares traded.

At 13.5 sen, the company had a market capitalisation of RM135 million.

EGH International's IPO was oversubscribed by 2.63 times for the 50 million shares allocated to the Malaysian public.

The IPO comprised 240 million new shares and an offer for sale of 120 million existing shares at 16 sen apiece.

The company raised RM38.4 million from the issuance of new shares, while the offer for sale was valued at RM19.2 million.

The proceeds will be used to build a new head office, warehouse and Interior Premium Outlet showroom in Puchong, Selangor, repay borrowings and fund business expansion.

The remaining funds will go towards working capital and listing expenses.

Puchong-based EGH International specialises in interior fit-out services, interior design, renovation and furniture supply, with projects spanning hotels, healthcare facilities, educational institutions and airport lounges.