Its share price shot up by as high as 93% to 96.5 sen in early trading
BETAMEK Bhd made a stellar debut session as its share price shot up by as high as 93% to 96.5 sen in early trading following its listing on the ACE Market of Bursa Malaysia today.
At 9am, the counter opened at 61.5 sen, 23% stronger than the offer price of 50 sen.
A total of 94.46 million shares changed hands within an hour of trading.
MD Mirzan Tun Dr Mahathir said the firm is well-positioned to benefit from the upswing in the automotive industry, as the industry supply chain continues to improve.
Betamek, which provides electronics manufacturing services solutions to automotive makers, is optimistic that the demand for its vehicle audio-visual products and vehicle accessories will continue to grow, given that its major customer, Perusahaan Otomobil Kedua Sdn Bhd (Perodua), continues to see rising demand for its vehicles.
“As hybrid, electric and autonomous driving vehicles gain global market share, Betamek is in a unique position to leverage this growing market trend, and expand and diversify its product offerings with competitive solutions,” he said in a statement today.
He noted that there are still many untapped opportunities for product segments in relation to Advance Driver Assistance Systems, entertainment and connectivity, the Internet of Things and accessories of vehicles.
Meanwhile, Rakuten Trade Sdn Bhd believes that the 32-year-old company will deliver net profits of RM12.1 million and RM17.7 million for financial years 2023 (FY23) and FY24, respectively, benefitting from the increasing demand for affordable vehicles.
It noted that since 1994, Betamek has had a symbiotic partnership with Perodua, the market leader in the local automotive industry, with a 37.4% market share in 2021.
As such, it has placed a ‘Buy’ call on Betamek, with a target price of 55 sen per share.
Betamek’s IPO entails a public issue of 67.5 million new shares, representing 15% of its enlarged share capital, and an offer for the sale of 45 million existing shares to selected investors by way of a private placement.
Of the 67.5 million new shares, 22.5 million new shares are made available to the public via balloting, and 13.5 million new shares are for its eligible directors, employees and persons who have contributed to the success of Betamek under pink form allocations.
The remaining 31.5 million new shares have been earmarked for private placements to selected investors.
Proceeds from its IPO will mainly be used to fund its research and development (R&D) activities for new product development and to further expand its R&D office space, raw material storage and ancillary facilities to cater to its growth, as well as for future R&D activities.
Part of the proceeds will also be used to acquire machinery and equipment for its existing factory in Rawang. — Bernama