Malaysia based KHPT Holdings Bhd rises 45% on ACE Market debut

The shares of KHPT Holdings Bhd, a manufacturer of automotive parts and components, surged by 45% on its first day of trading on the ACE Market of Bursa Malaysia after its RM21.73mil initial public offering (IPO). The company entered the market strong, with shares priced at 29 sen each, which is a nine sen increase from its IPO price of 20 sen per share. 

At 9.40am, the stock has decreased due to investors taking profits, now up by 15% at 23 sen per share. The group plans to use most of the funds from the IPO to buy a press machine and automation equipment, as stated by the group. The rest of the funds will be used for upgrading the factory, covering working capital, and paying for listing costs.

Datuk Noripah Kamsoa, the independent non-executive chairman of KHPT, stated that the market capitalisation of RM80.48mil places the company in a strategic position to benefit from its strong relationships with Proton and Perodua, which are leading brands in the local market.

"Our ability to deliver customised, high-quality automotive components has made us a trusted partner in the production of 14 Proton and 13 Perodua past or current models.

"As the industry’s continuous evolution into the electric vehicles and green technology, KHPT’s in-house engineering capabilities and long-standing expertise will allow us to not only adapt but lead in providing innovative solutions," she said in a statement.