KUALA LUMPUR: Autoparts distributor MSB Global Group Bhd made a disappointing debut on the ACE Market, with its shares falling 15% below its IPO price in early trading on Tuesday, marking the sixth consecutive listing on the exchange to decline on day one since March.
MSB Global opened at 17 sen, down from its initial public offering (IPO) price of 20 sen per share, and dipped further to 16.5 sen before recovering slightly to 18 sen by 9:05am. Nearly 14 million shares were traded within the first few minutes, valuing the company at RM104 million at its last traded price.
The weak debut reflects broader market caution, despite a modest recovery in investor confidence following recent global trade tensions. MSB Global’s performance adds to a string of lacklustre IPOs on the ACE Market, indicating ongoing investor hesitancy toward small-cap listings.
The IPO, which raised RM41.4 million, saw relatively muted retail interest with applications oversubscribed by just six times — a modest figure compared to more robust debuts seen in past years.
MSB Global distributes GSP-branded automotive components such as driveshafts, suspension parts, steering racks, and wheel hub assemblies across Malaysia. The company plans to channel the IPO proceeds as follows:
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22.58% for new machinery and equipment,
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18.7% for construction of a new factory and warehouse,
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3.14% for the development of an in-house electric vehicle (EV) charger,
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20.67% for the repayment of bank borrowings,
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and the remainder for general working capital and listing-related expenses.
A private placement of existing shares also raised RM14.8 million, which went to managing director Datuk Ow Kee Foo, executive director Lai Swee Ping, and Lee Li Lian, the spouse of a director in one of MSB Global’s subsidiaries.
M&A Securities Sdn Bhd acted as the principal adviser, sponsor, sole underwriter, and placement agent for the listing.
As MSB Global navigates its first days on Bursa Malaysia, all eyes will be on how the company delivers on its expansion plans — and whether confidence in ACE Market IPOs can be restored.–THE EDGE
