KUALA LUMPUR (March 17): Rohas Tecnic Bhd, which made its debut on the Main market of Bursa Malaysia at 99.5 sen today, saw its share price close sharply lower by 20.5% at 89 sen, after skidding to as low as 88 sen earlier.

Some 6.36 million shares were traded today. Rohas Tecnic is the result of a reverse takeover (RTO) of Tecnic Group Bhd by Rohas-Euco Holdings Sdn Bhd (RE Holdings), which resulted in the injection of Rohas-Euco Industries Sdn Bhd (REI) business and assets into Tecnic. Tecnic last closed on March 16 at RM1.12.

The RTO effectively places REI, a steel structure fabricating company that was once listed before it was taken private by prominent businessman Tan Sri Wan Azmi Wan Hamzah about nine years ago, back on the local bourse.

REI is primarily involved in the design, fabrication and erection of power transmission and telecommunication towers, as well as steel structures for power substations.

Tecnic meanwhile, through its subsidiaries, was involved in plastic mould design and fabrication, plastic injection and blow moulding as well as provision of secondary and assembly services for the manufacturing of plastic products.

In October 2014, Tecnic disposed of its entire core business — including the manufacturing, distribution and sale of plastic products and moulds — to SKP Resources Bhd for RM200 million. A year later, it slipped into Practice Note 16 status and was required to acquire new business to sustain its listing on the local bourse.

In September 2015, RE Holdings offered to sell REI to Tecnic for RM200 million, to be satisfied with new shares of 63 sen each, which started the RTO.

Post-listing, Rohas Tecnic's goal is to expand its reach overseas, and raise topline contribution from its international markets from just 10% now versus domestic's 90%.

The group hopes for a 70:30 ratio in the next three years, REI's chief executive Leong Wai Yuan told reporters in a press conference.

"Based on my own experience travelling around Southeast Asia, countries in this region such as Vietnam, Laos and Myanmar are receptive towards Malaysian companies intending to set up businesses there," Leong said.

"Contribution from the domestic market as of June 2016 was 90%. The goal is to increase revenue from our overseas markets to 30% in three years. Vietnam, Laos and Myanmar — these will be the top countries [of our choice]," he said.

Rohas Tecnic is also bidding for a little over RM500 million worth of projects in FY17. These jobs fall within REI's core businesses of power transmission, telecommunication towers and water treatment (REI is also an engineering, procurement and construction contractor for water and sewage treatment plants).

Rohas Tecnic's outstanding orderbook currently stands at RM180 million, which is set to keep the group busy for the next 1½ years.

"We are also bidding for a water treatment plant project in Vietnam. This is still ongoing but we hope to win the job," Leong said.

According to REI's managing director George Sia, Rohas Tecnic's portion of the entire project is worth US$50 million.

When asked if the group is eyeing any other projects, Leong said looking at the company's outstanding orderbook, it is "working backwards to get all the necessary projects out for [its] customers first".