Volcano closes at 48.5 sen for strong debut

KUALA LUMPUR: Volcano Bhd, an international manufacturer of nameplates and plastic injection moulded parts, made a strong debut on Bursa Malaysia’s ACE Market yesterday, opening at 70 sen, or a premium of 35 sen over its offer price of 35 sen.

At the opening bell, the company saw 10.06 million shares changing hands. It ended at 48.5 sen yesterday.

Executive director and chief financial officer Khoo Boo Wui said proceeds from the listing would be used to accelerate the company’s factory expansion to accommodate new machinery.

“We plan to have additional laser-cutting machines and plastic injection moulding machines. We will expand our factory to accommodate the new machinery,” he said at a virtual press conference after the listing ceremony yesterday.

The expansion of the factory in Thailand with a built-up area of 10,086 sq ft to fit five new plastic injection moulding machines was expected to be completed by the second half of 2024, he said.

Volcano recorded an overall oversubscription rate of 176.6 times from the new shares made available to the Malaysian public.

Volcano’s foreign market accounts for more than 95 per cent of its overall revenue in the financial year ended Dec 31 last year.

Volcano chairman Wong Wan Chin said the group was seeking to capitalise on its current regional presence, particularly in Thailand and Singapore, to tap opportunities in the electrical and electronics and automotive industries.