KUALA LUMPUR (Jan 20): Branding and marketing firm SBS Nexus Bhd (KL:SBS) failed to stay above water on its ACE Market debut on Tuesday (Jan 20), ending its first trading day just one sen shy of its initial public offering (IPO) price of 25 sen.

The stock, which opened flat, fell to a low of 23 sen and a high of 26 sen during trading before closing 4% lower at 24 sen. It was the exchange’s second most actively traded stock, with some 76.2 million shares changing hands. The company is now valued at RM117.6 million.

SBS Nexus’ listing came after applications from the Malaysian public for its IPO shares exceeded the available shares by more than 22 times.

The Bumiputera portion was oversubscribed 23 times, while demand from non-Bumiputera investors surpassed the allocation by 21 times.

All shares set aside for eligible persons were fully subscribed. The private placement to select and Bumiputera investors, as well as the offer for sale of existing shares to select investors, were also fully taken up.

Under the listing exercise, SBS Nexus raised RM30.6 million in IPO proceeds, which are earmarked mainly for business expansion and working capital requirements. 

Meanwhile, RM12.25 million from the offer for sale accrued to chief operating officer Warren Cheng, head of digital Lai Kian Chuan and chief business officer Lim Cheng Yong.

SBS Nexus is primarily engaged in branding and marketing services, including content creation and digital billboard advertising.

M&A Securities Sdn Bhd is the sole adviser, sponsor, underwriter and placement agent for the IPO.