Signature Alliance shares rise 13.71% on ACE Market debut

KUALA LUMPUR: Investors gave Signature Alliance Group Bhd (SAG) a warm welcome on its debut on the ACE Market of Bursa Malaysia, ramping up the newly-listed share to a 13.71% premium over its initial public offering (IPO) price.

At the time of writing, the interior fit-out solutions provider, which raised RM161.2mil via an IPO fundraising, was trading at an intra-morning high of 70.5 sen a share, an 8.5 sen increase over its public issue price of 62 sen a share.

It was the most active stock on the domestic market, with 63.9 million shares changing hands.

SAG is on an expansion drive, allocating more than half of its IPO proceeds to the development of a new corporate headquarters and production facility in Selangor.

A sum of RM88mil or 54.6% of the total proceeds will go towards the new corporate and production facility, while an additional RM12mil will be used for establishing and expanding brand offices in Penang and Johor.

SAG would also allocate RM30.1mil for working capital requirements and RM4mil for the acquisition of new machinery and equipment.

The remaining proceeds would be used for the repayment of bank borrowings at RM20mil and to cover listing-related expenses at RM7.1mil.

Pre-IPO, SAG was 50.7%-owned by Signature International Bhd, which is indirectly controlled by construction outfit Chin Hin Group Bhd. Following the IPO, Signature International’s stake was diluted to 37.5%