Supergenics makes strong LEAP Market debut

TheEdge Tue, Jan 07, 2020 10:49am - 1 year ago View Original


KUALA LUMPUR: Supergenics Bhd made a strong LEAP Market debut yesterday — the first listing of the year on Bursa Malaysia.

The stock, which opened at 22.5 sen, up 12.5% over its initial public offering (IPO) price of 20 sen a share, climbed further to finish its first day on the local stock exchange at 28 sen, a strong 40% over its IPO price. Its last traded price gives it a market capitalisation of RM26.04 million.

The company is involved in the provision of integrated turnkey solutions for the development of cleanrooms and the provision of management services for clean rooms. A cleanroom is a facility usually used as a part of specialised industrial production, such as the manufacture of pharmaceutical items and microprocessors, or scientific research.

At the group’s listing ceremony yesterday, Supergenics managing director Tan Bii Chau said the group is currently in talks to expand its market reach. “In the past, our customers were mainly from Selangor. With the IPO, we can enhance and increase our workforce, and we can touch new geographical grounds. We are currently talking to (prospective) clients in Penang, Johor, Brunei and Indonesia,” said Tan.

The group’s IPO raised RM5 million in proceeds, of which RM2 million will be used for working capital to take on bigger contracts and hire more staff to facilitate its expansion into other geographical contracts. Of the balance, RM1 million will be used to develop a showcase cleanroom, with another RM1 million to enhance its supergenics laboratory monitoring and control system or SGLMS. The final RM1 million will be used to defray its listing expenses.

Tan said he is confident of Supergenics’ earnings trajectory because the company’s business has been resilient.

According to its information memorandum, for the financial year ended Dec 31, 2018 (FY18), the group posted a net profit of RM1.52 million, 4.7 times the RM326,554 it achieved in FY17, as revenue grew to RM6.66 million from RM5.24 million.

Tan said Supergenics is mainly focused on the life sciences industry, catering to stem cell centres and medical centres. Its order book now amounts to RM13.5 million. In the future, Tan said the group plans to explore other industries which have a demand for cleanrooms.

On the enhancement of its SGLMS, Tan said it is in line with the group’s plan to add value to its clients and expand its customer base, with an eye on highly regulated industries like food processing and pharmaceuticals.

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