AME Elite jumps to RM1.40 in early trade

KUALA LUMPUR: Integrated industrial property solutions provider AME Elite Consortium Bhd jumped to a high of RM1.40 when it made its debut on the Main Market of Bursa Malaysia on Monday.

It opened at RM1.28 sen, or two sen below its offer price of RM1.30.

However, strong buying interest saw its share price climb to a high of RM1.40.

At 9.06am, it was trading at RM1.34, or four sen above its offer price of RM1.30. There were 11.40 million shares done at prices ranging from RM1.27 to RM1.40.

The FBM KLCI was up 9.31 points or 0.6% to 1,566.15. Turnover was 207.60 million shares valued at RM112.90mil. There were 260 gainers, 70 losers and 168 counters unchanged.

Its offer of 8.54 million new shares to the public was oversubscribed by 4.39 times.

AME’s IPO consists of a public issue of 85.4 million new shares along with an offer-for-sale of 42.7 million existing shares, at an issue price of RM1.30 per ordinary share.

AME raised RM111.10mil from the offer of new shares and most of the proceeds would be used to expand its business.

Its net profit almost doubled to RM13.1mil for the first quarter ended June 30,2019 from RM6.7mil a year ago.

The strong earnings growth was due to higher demand for industrial properties as a result of Malaysia’s economic growth, in addition to investments in the manufacturing sector and the ongoing US-China trade tensions.

Affin Hwang Capital Research said AME benefits from rising demand for industrial properties in Malaysia due to trade diversion amidst the ongoing US-China trade war.

“We initiate coverage on AME with a Buy call and target price of RM1.83, based on 30% discount to RNAV, ” it said in a research note.

Source: TheStar