Wentel Engineering Holdings non-executive chairman Ban Kim Wah (fifth from left) and non-independent executive director Wong Chun Wei (fifth from right) during the company’s debut on Bursa’s ACE Market on February 6, 2024. (Photo by Zahid Izzani/The Edge)

KUALA LUMPUR (Feb 6): Metal fabricator Wentel Engineering Holdings Bhd ended its maiden trading day on Tuesday at 28 sen, up two sen or 7.69%, after opening flat on its ACE Market debut at 26 sen.

At market close, the company's market capitalisation was RM322 million based on an enlarged share capital of 1.15 billion shares.

Wentel was also the most active stock on Bursa Malaysia, with 250.78 million shares traded, marking a more than tenfold increase from its opening volume of 19.70 million shares.

The stock was trading at a price-earnings ratio of 15.73 times based on a net profit of RM20.48 million and earnings per share of 1.78 sen in its financial year 2022 (FY2022).

Wentel raised RM71 million from its initial public offering (IPO), which was oversubscribed by 17.72 times.

Group chief executive officer Chuah Chong Syn said the proceeds will primarily be used for the construction of a new manufacturing plant in Johor and the purchase of new machinery and equipment. The plant is expected to commence operations in the second half of 2025.

According to its prospectus, the new plant, consisting of two blocks of single-storey factories and two blocks of workers' hostels, will be utilised for the fabrication of semi-finished metal products, metal parts and assembly operations.

Touching on the company’s prospects, Chuah said the security segment constituted 60% of its revenue, the semiconductor segment 20%, CNC (computer numerical control) machining 15%, and medical devices 5%.

“All the projected increase (in revenue) will be in the security segment, as we are experiencing it now. If there is a semiconductor upsurge in the second half of the year, that will be a bonus for Wentel as well,” he told reporters at a press conference after the listing ceremony at Bursa Malaysia.

Chuah pointed out that talent retention has always been a major challenge for the company. As such, he said the company plans to construct workers' hostels to welcome employees coming from outside Johor Bahru.

“We always work with local institutions [such as Universiti Teknologi MARA and Universiti Teknikal Malaysia Melaka] to recruit students to do internships and continue working [with the company] after graduation if they are interested,” he added.

TA Securities Holdings Bhd was the principal adviser, sponsor, underwriter and placement agent for the listing exercise.