KUALA LUMPUR (May 6): Shares of workforce management services provider Manforce Group Bhd (KL:MFGROUP) ended their debut on Bursa Malaysia’s ACE Market slightly below their initial public offering (IPO) price on Wednesday, bucking the broader market gain. 

The stock fell immediately after trading started on Wednesday, dropping as much as five sen, or 1.31%, to 37.5 sen — below its IPO price of 38 sen. It later hit a low of 34.5 sen before noon, before gaining back lost ground, but still fell just half a sen short of its IPO price, closing at 37.5 sen, with almost 70 million shares traded. The company’s market value stood at RM120 million at the closing price.

Manforce, which was previously listed on the LEAP Market, is a workforce management services provider specialising in foreign worker recruitment and management, as well as project cleaning services.

The group's IPO comprises a public issuance of 79.996 million new shares and an offer for sale of 19.999 million existing shares. The exercise is expected to raise RM30.4 million for the group, while the offer for sale will generate RM7.6 million for managing director Datuk Wong Boon Ming.

The company has earmarked RM14.74 million of the proceeds to expand business operations by increasing its recruitment quota, with the remaining to be utilised for IT and operational upgrades, working capital and listing expenses.

TA Securities in a recent note said the IPO price leaves no upside at listing and projected the group’s earnings could decline 4% this year before recovering in 2027, citing slower growth following a government freeze on new foreign worker arrivals since May 2024.

M&A Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO, while Eco Asia Capital Advisory Sdn Bhd is the financial adviser.

Read also:
Foreign worker recruitment firm Manforce sets ACE Market IPO at 38 sen apiece
Manforce IPO oversubscribed 2.07 times ahead of May 6 ACE Market debut
Manforce fairly valued, IPO price leaves no upside, says TA Securities