KUALA LUMPUR (May 29): Information technology (IT) solution provider Cloudpoint Technology Bhd’s share price settled 35.5% higher than its initial public offering (IPO) price of 38 sen per share on its debut on the ACE Market of Bursa Malaysia.
At 9am on Monday (May 29), the counter opened strongly at 75 sen or a 97% premium over its reference price, with an opening volume of 17 million shares. Cloudpoint’s opening price was also the stock’s highest price in intraday trade.
It was the most active stock on the local exchange, with a total of 344.38 million shares changing hands.
Cloudpoint's IPO was oversubscribed 112.94 times after a total of 36,608 applications for 3.03 billion new shares, with a value of RM1.15 billion, were received from the Malaysian public.
The group delivers comprehensive solutions encompassing design, procurement, implementation, support, and after-sales maintenance. Cloudpoint said its clientele includes large enterprises such as financial institutions, telecommunications companies and technology service providers in Malaysia.
On its financial results for the first quarter ended March 31, 2023 (1QFY2023), Cloudpoint said its net profit tripled to RM3 million, compared with RM933,000 a year earlier.
Revenue for 1QFY2023 rose to RM19.40 million, versus RM10.25 million previously, thanks to recurring and project-based incomes.
In a statement on Monday, Cloudpoint executive director and chief executive officer Choong Wai Hoong said the group’s IPO was perfectly timed to capitalise on evolving trends, aligning with tremendous market opportunities.
He said that enterprises are increasingly investing in new technologies to enhance business agility and competitiveness, driven by factors such as growing emphasis on security and cyber defences, the surge in cloud computing, and software modernisation.
Under the listing exercise, Cloudpoint had aimed to raise approximately RM40.4 million from its IPO, of which RM13.3 million has been earmarked for business expansion, while RM15.8 million will go towards working capital, RM7.8 million for office relocation, and the remaining RM3.5 million for listing expenses.
Cloudpoint’s IPO had entailed a total offering size of 159.48 million shares, where 53.16 million shares were offered to institutional and selected investors, 26.58 million shares made available to the Malaysian public via balloting, 13.29 million shares set aside for eligible directors/employees, and 66.45 million shares for investors approved by the Ministry of Investment, Trade and Industry.
M&A Securities Sdn Bhd was the principal adviser, sponsor, underwriter and placement agent for this IPO.
Read also:
ACE Market-bound Cloudpoint aims to raise RM40.4m from IPO
ACE Market-bound Cloudpoint’s 159.48 million IPO shares oversubscribed by 112.94 times
ACE Market-bound Cloudpoint 1Q net profit surges 223% to RM3.01m
Source: TheEdge - 30 May 2023
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