Lim Seong Hai Capital opens 17% lower on ACE Market debut

• Apart from construction, the company also supplies building materials, lighting and related mechanical and electrical products, hardware products and tools, rental of construction machinery, and equipment.

KUALA LUMPUR (March 21): Shares of Lim Seong Hai Capital Bhd (KL:LSH) fell 17% on its first-ever trades on the ACE Market after the construction firm raised RM168.08 million as part of its transfer from the LEAP Market.

LSH opened at 73 sen on volume of 2.81 million shares compared to its initial public offering (IPO) price of 88 sen per share. The stock was trading at 87 sen at 9.10am after more than three million shares changed hands.

"Today is a historic moment for LSH as we begin a new chapter with our listing on the ACE Market," said chairman Tan Sri Lim Keng Cheng at the listing ceremony on Friday. "This listing is not the destination but the beginning of a bigger journey.”

Based in Kuala Lumpur, LSH did not raise any proceeds from its listing on the LEAP Market back in 2021. The company, however, raised RM4.66 million from pre-listing investors who were employees and outside associates of the company which has since been used up.

Apart from construction, the company also supplies building materials, lighting and related mechanical and electrical products, hardware products and tools, rental of construction machinery, and equipment.

LSH raised RM116.2 million from the public issue of new shares and another RM51.9 million from the offer for sale of existing shares. New shares set aside for retail investors were oversubscribed close to 12 times while allocation for eligible persons were also fully subscribed.

The company plans to use RM108.86 million as working capital of its construction projects and the remaining proceeds from the public issue will be used to cover estimated listing expenses.

The offering of existing shares through private placement, meanwhile, was fully taken up, and the proceeds will accrue entirely to Lim and his three siblings as well as to their private vehicle Lim Seong Hai Resources Sdn Bhd. Post-listing, their combined stakes will be diluted to a little under 65%.

AmInvestment Bank is the IPO’s principal adviser, sponsor, sole underwriter and sole placement agent.

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