From left: M&A Securities managing director of corporate finance Datuk Bill Tan, Daythree MD Raymond Davadass, Daythree chairman Datuk Ting Heng Peng and M&A Securities head of corporate finance Gary Ting

KUALA LUMPUR (July 26): Daythree Digital Bhd made an impressive debut on the ACE Market of Bursa Malaysia, opening on Wednesday (July 26) at 65 sen, or more than double its initial public offering (IPO) price of 30 sen a share.

Shares of the tech-driven global business services (GBS) reached an intra day high of 73 sen before easing to 62.5 sen, for a gain of 32.5 sen or 108.33% at market close.

A total of 141.76 million shares changed hands.

At market close, Daythree’s market capitalisation was RM300 million.

In a statement on Wednesday (July 26), managing director Raymond Davadass said the company’s listing is a natural progression as the group readies itself for further growth.

“The listing will facilitate Daythree with greater financial flexibility to pursue future growth opportunities and enhance our group’s reputation as well as retain and attract new skilled employees from the GBS industry,” he said.

Earlier, Tricor Investor & Issuing House Services Sdn Bhd, on behalf of the group, had announced that applications for 3.12 billion new shares were received from the public, representing an oversubscription rate of 129.2 times.

“The fact that the public portion of our IPO was oversubscribed by an astounding 129.2 times and subscription in full of the private placement and pink forms speaks volume about the confidence and trust [the investors] have placed on us,” said Davadass during the launch.

“It is a testament to the hard work and dedication of our talented team who has relentlessly pursued innovation, creativity and excellence in everything we do,” he said.

Daythree, which has an enlarged share capital of 480 million shares after its IPO exercise, has no dividend policy at the present.

The group raised RM33.12 million in its IPO, of which the bulk (RM14.7 million) was earmarked for working capital to recruit an additional 380 customer experience executives, as well as RM3.02 million to recruit industry experts to capture growth opportunities in the local GBS landscape.