KUALA LUMPUR: Cnergenz Bhd made its debut on Bursa Malaysia's ACE Market with an opening price of 60 sen, representing a premium of 2.5 sen or 4.31 per cent above its initial public offering (IPO) price of 58 sen.
Chief executive officer and executive director Lye Yhin Choy said Cnergenz had raised RM58 million in funds through the IPO.
It is expected to be utilised towards the company's expansion plans that includes the development of smart factories that will benefit local companies.
"Proceeds obtained from this listing exercise will be used to acquire land to build our new factories and to increase product offerings that will help local small and medium enterprises (SMEs) to move forward in industrial revolution 4.0.
"One of our key points is to have a smart factory automation environment which is affordable for local companies. That is our main plan going forward," he said at a press conference after the listing exercise today.
Cnergenz aims to complete the smart factory by the second half of next year and has earmarked RM36 million for its expansion this year.
Lye said Cnergenz was putting great focus to strengthen the local supply chain in the country to enhance the development of smart factory solutions.
On the current semiconductor shortage, Lye said although the sector was building up new factories to address the issue, it would take at least another year for the factories to get into production to meet the demand.
"Therefore, the issue will not be addressed within the short timeline. Maybe the semiconductor factories will be able to cope with the demand next year and we foresee demand for the market to be strong, for all electronic gadgets, especially as we are on the route to exit the pandemic. We believe growth will be strong for our company," added Lye.
Lye said Cnergenz also promoted efficiency in operations by helping its clients to reduce reliance on heavy energy and processes, in tandem with its green initiatives.
He said the new factories would incorporate the latest technology to ensure the buildings are energy efficient.
Cnergenz is an electronics manufacturing solutions provider which specialises in surface mount technology manufacturing solutions for the electronic and semiconductor industries.
The company is based in Penang and its market base is primarily in Malaysia which contributed 71.9 per cent to the group's revenue in the recent financial year ended Dec 31, 2021.
It also has tapped into overseas markets namely Vietnam and Thailand.