Dancomech debuts with 5 sen premium
KUALA LUMPUR: Dancomech Holdings Bhd made its Bursa Malaysia debut at 80 sen with a five-sen premium. A total of 38.28 million shares were traded.
Dancomech is a supplier of industrial valves for palm oil, oil and gas (O&G) and water sectors in the country.
The company raised RM18 million from the listing exercise.
Managing director Daniel Aik Swee Tong said a portion of the funds would be used for business expansion.
“We will be opening offices in Sabah and Sarawak, and upgrading our repair and testing facilities,” hesaid at Dancomech’s listing, here, yesterday.
The company will pump RM4 million into Sabah and Sarawak, and RM2.5 million into Johor.
The expansion includes funds for the purchase of properties to set up offices and warehouses to store equipment.
On the company’s listing, Aik said the premium showed the public’s confidence in the company despite the weak market.
He said Dancomech was hopeful that prices of commodities, such as crude oil and palm oil, would improve as this would result in increased investments from O&G players as well oil palm plantations, which would benefit the company.
Dancomech sales and business development manager Kelvin Wong Seik Siang said the company had a 2.5 per cent market share of process control equipment (valves) and measurement instruments in Malaysia last year.
Wong said Dancomech, which recorded a net profit of RM11 million last year, was looking at a 10 per cent annual growth rate.
Executive director Johnson Aik Cwo Shing said the firm was looking at expanding its business in Indonesia and Thailand.
“Indonesia’s palm oil sector is a growing market for Dancomech,” he added.