by ASILA JALIL / pic credit: samaiden.com.my
SAMAIDEN Group Bhd made its debut on the ACE Market of Bursa Malaysia Securities Bhd at a 108.3% premium before ending its maiden listing day 67.7% higher than its offer price of 48 sen a share.
The engineering, procurement, construction and commissioning of solar photovoltaic (PV) systems and power plants hit a high of RM1.12 in intraday trade before closing at 80.5 sen on profit-taking yesterday.
“The strong opening price shows everyone welcomes our listing and are supportive of the renewable energy (RE) services in the country,” said group MD Chow Pui Hee during the virtual press conference after the listing exercise.
The ceremony was historic as it was conducted virtually as a result of the Conditional Movement Control Order (CMCO) which began on Wednesday.
Samaiden’s listing exercise successfully raised RM29.3 million, of which RM7 million will be used for the purchase of a new corporate office, RM2.5 million is allocated for its business expansion and marketing activities, and RM16.6 million is for capital expenditure and working capital. The remaining RM3.2 million will be used for listing expenses.
Chow said the group is well prepared for the CMCO as it had implemented standard operating procedures in the company during the first phase of the MCO enforced in March.
“Although this CMCO limits our movements, our operations still run as usual as we can do virtual meetings or work from home. This listing was also done virtually, so I believe that the CMCO will not have a significant impact on our daily operations,” she said.
Chow said the group’s expansion plans in Vietnam will be postponed and will be done in stages in a safe manner amid the pandemic.
“We are now ready to take on new challenges and to position Samaiden competitively in the industry.
“Our business expansion plans in the pipeline will continue to augment Samaiden to its full potential with its multiple avenues of growth prospects,” she added.
Samaiden’s public issue of 10.5 million shares was oversubscribed by 56.52 times.
Rakuten Trade Sdn Bhd has a ‘Buy’ call on Samaiden with a target price of 68 sen and expects the group’s earnings trajectory to continue moving forward due to its favourable industry outlook.
The research firm is positive on Samaiden after it secured the first purchase order for the design and supply of solar PV modules and balance system in Bac Lieu province, Vietnam, along with its plans to collaborate with local partners to explore business opportunities in the province.
“We are positive on the strategic move as Vietnam is the leading solar PV market within Asean supported by the revised National Power Development Master Plan VII where Vietnam is set to achieve a compound annual growth rate of 8% to meet the projected demand of installed capacity of 129,500MW by 2030.
“Other strategies include to build, own and operate an integrated biogas power generation plant in Kelantan and to provide services of retro-commissioning of building and energy-saving systems as new revenue streams,” it said.
It added that Samaiden’s balance sheet is healthy with a net cash position of RM6.1 million and post listing, net cash is set to increase to RM33.7 million giving ample room for future business expansion.