A clean debut for Supergenics

Its shares opened 2.5 sen higher over the issue price of 20 sen and closed at 28 sen

by SHAZNI ONG / pic by MUHD AMIN NAHARUL

SUPERGENICS Bhd became the first company to list on Bursa Malaysia this year, making its debut on the local bourse’s Leading Entrepreneur Accelerator Platform (LEAP) Market at a 12.5% premium and ending the day 40% higher.

Shares of the cleanroom services and development firm opened 2.5 sen higher over the issue price of 20 sen at 22.5 sen, with 70,000 units traded. The counter closed yesterday at 28 sen, up eight sen from the offer price.

The IPO provides the company with access to the capital markets, which is vital for its future business expansion, Supergenics group MD Tan Bii Chau said.

“The listing has also enhanced our profile. We are optimistic that this will strengthen our prospects in markets outside the Klang Valley, as well as regionally,” he told reporters after the listing ceremony in Kuala Lumpur yesterday.

The group is currently in talks with local and regional clients, namely in Penang, Johor, Brunei and Indonesia as part of its expansion strategy.

“In the past, our existing customers were mainly in Selangor. With the IPO, we can enhance and increase our workforce, and we can touch on geographical grounds,” Tan said.

The group is not ruling out a transfer of its listing status to the Main Market or ACE Market of Bursa Malaysia in the near term, but the matter would depend on regulatory approvals, Tan added.

Thinkat Advisory Sdn Bhd — the approved advisor, placement agent, custodian and continuing advisor for the exercise — said Supergenics aims to be listed on the Main Market or ACE Market within two years.

“They very much want to plan a listing on the ACE Market or Main Market within the next few years. It would depend on their financial performance,” Thinkat Advisory director Karl Fredericks said.

Supergenics is mainly involved in the provision of integrated turnkey solutions for the development of cleanrooms and the provision of management services for cleanrooms. Its business is currently focused within the Klang Valley area.

Presently, the cleanrooms developed by Supergenics are mainly used in the life sciences industry such as laboratories, medical centres and stem cell centres.

Moving forward, the group intends to further develop and enhance its Supergenics Laboratory Monitoring and Control System (SGLMS).

“The development of this system is in line with our strategic plan, which is to add value for our existing clients and expand our customer base, targeting those in highly regulated industries such as the food processing and pharmaceutical industries,” Tan said.

The listing exercise raised RM5 million, of which RM2 million will be allocated for working capital to take on contracts with greater contract sums and hiring of additional professionals to expand the group’s team.

This is to facilitate its expansion into other geographical locations, as well as to take on higher-valued contracts.

A further RM1 million will be used to develop a showcase cleanroom, and another RM1 million will go towards enhancing and further developing SGLMS, while the remaining RM1 million is to defray listing-related expenses.