KUALA LUMPUR: KHPT Holdings Bhd, which made its debut on the ACE Market yesterday, saw its share price rise nine sen to 29 sen from its initial public offering (IPO) price of 20 sen, with 157.70 million shares traded.
The company raised RM21.73 million through the public issuance of 108.64 million new ordinary shares.
KHPT independent non-executive chairman Datuk Noripah Kamso said the listing marks the beginning of the company's expansion, both in Malaysia and potentially into international markets.
She said that with a market capitalisation of RM80.48 million, the company is well positioned to leverage its strong relationships with Proton and Perodua.
"As the industry's continuous evolution into 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," Noripah said in a statement.
KHPT announced that over 75 per cent of the gross proceeds will be allocated for capital expenditure, 2.1 per cent to upgrade the Telok Panglima Garang Factory, and 1.7 per cent to buy an overhead crane.
Rakuten Trade Research expects KHPT's financial year 2023 (FY23) to FY26 earnings to grow by 7.0 per cent, underpinned by solid demand for the affordable segment, gradual expansion of manufacturing capacity, economic recovery, and increasing disposable income.
The firm said KHB stands out within the domestic automotive parts and components industry, underpinned by its solid foundation and nearly 30 years of expertise.
"In addition, its position is fortified by its solid relationships with Malaysia's top two automotive brands, namely Proton and Perodua, that account for 41.3 per cent and 18.9 per cent share of total industry volume (TIV), respectively.
"We expect KHB to register core net earnings of RM6.2 million and RM7.6 million for FY24 and FY25, respectively. Buy with a fair value of 29 sen," it added.