Evocom opens 16.67pct below IPO price on ACE Market debut

KUALA LUMPUR: Evocom Bhd made a lacklustre debut on Bursa Malaysia's ACE Market today, opening at a steep discount of more than 16 per cent to its initial public offering (IPO) price.

The logistics services provider opened at 15 sen, 16.67 per cent or three sen below its IPO price of 18 sen, with 10 million shares changing hands at the opening bell.

The Semenyih-based company provides manpower support for e-commerce logistics operations, alongside network support services covering last-mile delivery, transshipment and parcel shipment.

Its business is heavily concentrated on Shopee's in-house delivery arm, SPX Express, which accounts for more than 80 per cent of its annual revenue.

Evocom also manages two distribution hubs for Lazada and obtained a licence last year to provide international inbound courier services, expanding its operations beyond domestic logistics support.

The company raised RM20.5 million from its IPO, with RM7.2 million earmarked as working capital for its flexible staffing services to support existing operations.

Another RM3 million each will go towards developing technology applications and expanding its air freight transshipment business.

A further RM1.5 million has been allocated to establish its new headquarters in Nilai, RM1.34 million for general working capital and RM4.46 million for listing expenses.

The new headquarters, with an estimated floor area of 4,000 to 5,000 sq ft, will also serve as a fulfilment centre and hub management facility.

Evocom aims to increase its parcel-handling capacity to 5,000 parcels a day, potentially generating RM20,000 in daily revenue, compared with its current volume of about 3,000 parcels a month.

Its public offering was oversubscribed by 3.60 times.

Evocom's enlarged share capital comprises 455.63 million shares, giving it an indicative market capitalisation of RM82.01 million based on its IPO price.