Wawasan Dengkil Holdings Bhd’s debut on the ACE Market was far from a victory lap, as the construction services firm’s shares slipped below its IPO price within minutes of trading on Tuesday.
The stock opened flat at 25 sen—matching its reference price—with an initial volume of 2.89 million shares. But the optimism quickly faded. Within minutes, heavy selling pressure sent the stock tumbling to 23.5 sen by 9.10am, after over 11 million shares had changed hands. Wawasan Dengkil now joins a growing list of newly-listed counters that have stumbled out of the gate this month, becoming the fourth IPO in March to disappoint investors on day one.
Lim Soon Yik – Wawasan Dengkil Holdings Bhd, Executive Director
Despite the weak market reception, Executive Director Lim Soon Yik struck a confident tone at the company’s listing ceremony, saying the fresh capital would enable Wawasan Dengkil to accelerate its expansion plans and tap new business opportunities.
The public seemed to share that initial confidence—at least on paper. The IPO saw public retail applications exceed their allocation by 17 times, while all shares offered to eligible persons and private placements were fully subscribed.
In total, the company raised RM27.01 million from the listing. Of that, over a third is earmarked for working capital tied to project execution. Another 28% is set aside for new heavy machinery purchases, including excavators, a mobile crane, and dump trucks. “This is a timely expansion, especially with the government’s continued push for infrastructure development,” Lim said.
The firm is currently working on 14 active construction projects with unbilled orders worth RM378.14 million and is bidding for new jobs totalling RM1.3 billion. Its involvement includes notable projects like the third phase of the Light Rail Transit (LRT3). “As earthworks are crucial during the early stages of infrastructure builds, we’re well-positioned to ride the wave of upcoming construction demand,” Lim added.
Meanwhile, RM13.5 million raised from the offer-for-sale portion of the IPO—comprising existing shares—will go directly into the pockets of Lim and his family, raising eyebrows amid the stock’s lacklustre performance. Of the IPO proceeds, 5% will go toward general working capital, debt repayment, office upgrades, and listing expenses.
M&A Securities served as the adviser, sponsor, underwriter, and placement agent for the listing, while Eco Asia Capital Advisory acted as the financial adviser. The poor debut now casts a shadow over what was supposed to be a growth story—leaving many investors questioning whether oversubscription hype is enough to support post-listing performance in today’s cautious market.
