KUALA LUMPUR: 3REN Bhd, a provider of automation solutions and engineering services, made a strong debut with a 19.6 per cent jump on the ACE Market.
The stock opened at 33.5 sen per share—a 19.6 per cent premium over its initial issue price of 28 sen with an opening trading volume of 11.7 million shares, underscoring investor interest in the technology sector.
The stock rose to a peak of 36.5 sen before settling to 36 sen earlier.
The IPO raised RM30.8 million through the issuance of 110 million new shares, with funds primarily aimed at fueling 3REN's growth ambitions.
The company said of the proceeds, RM19.2 million is earmarked for business expansion,RM7.2 million to set up new delivery centers, RM5.1 million for research and development, RM3 million to establish a new Singapore office, and RM3.9 million for working capital.
The remaining RM11.6 million will be allocated toward debt repayment and IPO expenses.
3REN Executive Director and CEO Koh Dim Kuan highlighted the company's focus on the semiconductor industry, where demand is fuelled by technological advances.
"The future is wired with unlimited possibilities, and semiconductors are the building blocks of a new era," Koh said.
Positioned amid growth drivers like artificial intelligence, 5G, and the Internet of Things (IoT), Koh explained that "Southeast Asia has emerged as a hotspot for manufacturing activities due to the increasing demand for outsourcing.
"With this strategic outlook, the company sees opportunities for growth in line with Industry 4.0 and 5.0 transformations. "Given the opportunities that lie ahead, our strategic plans bode well for us to capture higher market share," Koh added."