MTAG makes strong debut on ACE Market

KUALA LUMPUR: Printing and materials converting company MTAG Group Bhd made a strong debut on the ACE Market of Bursa Malaysia on Wednesday, opening at 70 sen, which 17 sen above its offer price of 53 sen.

At 9.05am, it was trading at 60 sen. There were 60.91 million shares traded at prices ranging from 57 sen to 70 sen.

The FBM KLCI was down 0.23 of a point or 0.01% to 1,592.10. Turnover was 143 million shares valued at RM78.93mil. There were 89 gainers, 113 losers and 156 counters unchanged.

MTAG raised RM72.3m from its listing exercise after issuing 136.32 million new shares, or 20% of its enlarged share capital, at 53 sen each.

The shareholders of MTAG also placed out 68.16 million existing shares to selected investors.

MTAG had said of the RM72.30mil raised from the IPO, RM33min or 45.6% would be used to purchase 10 acres to build a factory. The first phase would comprise a built-up area of about 200,000 square feet. Its current facilities have a built-up area of 83,500 sq ft.

MTAG would also use RM13mil or 18.0% of the IPO proceeds to purchase machinery as it seeks to increase its annual production of labels and stickers to 636.8 million pieces from 324.5 million pieces now.

Source: TheStar