KUALA LUMPUR: Metal fabricator and assembler Wentel Engineering Holdings Bhd's share price was up as much as 9.62 per cent, or hit a high of 29 sen, on its debut on the ACE market of Bursa Malaysia today.
As at 10.58am, the company's share price was trading 7.69 per cent higher at 28 sen.
It was the most actively traded stock with 193.1 million shares changing hands
Wentel Engineering is metal fabricator of semifinished metal products, metal parts, as well as an assembler of finished products.
Wentel Engineering also caters to diverse sectors such as security, machining, electrical and electronic (E&E), and medical industries.
Rakuten Trade Sdn Bhd has a "buy" call on Wentel Engineering, attaching a fair value of 30 sen to its stock.
Wentel Engineering plans to use the RM65 million raised from its initial public offering (IPO) to enhance production capacity.
This involves the construction of a new manufacturing facility, that is expected to boost the production build-up area by 55 per cent from the second half of the financial year 2025 (2HFY25).
"The company will invest in advanced fabrication parameters machinery and equipment to diversify its product range, ensuring better alignment with customer demands regarding precision, accuracy, metals utilised, and metal thickness," said Rakuten Trade.
Additionally, by utilising its established presence in Singapore for post-sales services, the company has strategically forged partnerships to expand Wentel's worldwide reach.
This aims to boost brand recognition and facilitate entry into a broader customer market.
Rakuten Trade said this strategic move also serves as a risk mitigation measure, minimising exposure to volatility stemming from local economic fluctuations.
It expects Wentel to register core net earnings of RM17.1 million and RM19.2 million for FY24 and FY25 respectively.