6 days Ago By Nabiha Safian
KUALA LUMPUR: MSB Global Group Bhd, a distributor of automotive parts, made a quiet debut on the ACE Market, opening 15 per cent below its initial public offering (IPO) price in yet another sluggish listing for Bursa Malaysia's junior board.The stock opened at 17 sen, below its IPO price of 20 sen and stayed there until the closing to continue a string of first-day underperformances on the ACE Market.MSB Global was the sixth straight company since March to see its share price dip on debut.
Several new listings this year have struggled to stay above their IPO prices. SumiSaujana Group Bhd debuted at 18 sen on April 9 — 25 per cent below its IPO price of 24 sen. Chemlite Innovation Bhd fell 10 per cent to 22.
5 sen on March 26, while Oriental Kopi Holdings Bhd, which closed at 87.5 sen on January 23, now trades at 66.5 sen, marking a 24 per cent decline.
Saliran Group Bhd started slightly above its IPO at 27.5 sen but has since dropped to 21 sen as of March 13.Tradeview Capital fund manager Neoh Jia Man Yes expects the trend of underperformance to persist in the near term, given the ongoing market volatility.
"Uncertainty surrounding US import tariffs continues to weigh on investor sentiment, which is likely to dampen appetite for IPOs relative to last year," he told Business Times."The key determinant is overall market conditions. A sustained improvement in investor sentiment would be essential for a recovery in IPO performance.
However, given the current macroeconomic headwinds, it is difficult to predict the timing of such a turnaround," he added.Meanwhile, despite the weak start, MSB Global successfully raised RM26.6 million through its IPO, which saw the issuance of 133 million new shares.
In a statement, the company said that RM4.97 million from the proceeds will be allocated for the reconstruction of a new factory and warehouse to support the production of lubricants and automotive fluids. Another RM6.
01 million is earmarked for purchasing machinery, equipment, and raw materials for its new blending and fill-and-finish lines.Additionally, RM830,000 will fund the launch and distribution of MSB Global's proprietary electric vehicle (EV) chargers, while the remaining balance will go toward bank loan repayments, working capital, and listing expenses."Our listing on the ACE Market signifies more than just a financial achievement—it marks a strategic step forward in our growth journey.
"With the capital raised, we will strengthen our production capabilities, expand our product portfolio, and continue to innovate in both the aftermarket automotive sector and the burgeoning EV space. We deeply appreciate the confidence shown by our investors and the unwavering commitment of our team," said the company's managing director, Datuk Ow Kee Foo.MSB Global is a distributor of GSP-branded automotive parts and components in Malaysia, including driveshafts, wheel hub assemblies, suspension parts and steering racks.
Its in-house brands—FK Fukuoka and ZR Zuric—offer a range of essential automotive fluids, including engine oil, transmission fluid, gear oil, and brake fluid, catering to the varied needs of the market.M & A Securities is the principal adviser, sponsor, underwriter, and placement agent for the IPO.© New Straits Times Press (M) Bhd.
