Evocom opens 16.67pct below IPO price on ACE Market debut

KUALA LUMPUR: Evocom Bhd made a lackluster opening on Bursa Malaysia's ACE Market, trading more than 16 percent below its initial public offering (IPO) price. The company, which offers manpower support for e-commerce logistics operations, including last-mile delivery, transshipment, and parcel shipment, debuted at 15 sen, 16.67 percent or three sen lower than its IPO price of 18 sen. Ten million shares changed hands at the market's opening.

The Semenyih-based logistics service provider, which focuses mainly on Shopee's delivery arm SPX Express, accounted for over 80 percent of the company's annual revenue. Evocom also manages distribution hubs for Lazada and recently obtained a license to provide international inbound courier services. The IPO raised RM20.5 million, with RM7.2 million earmarked for working capital to support existing operations, RM3 million each for technology applications and air freight transshipment expansion, RM1.5 million for a new headquarters in Nilai, RM1.34 million for general working capital, and RM4.46 million for listing expenses.

Evocom's share capital will be increased to 455.63 million shares, with an indicative market capitalization of RM82.01 million. The company's IPO was oversubscribed by 3.60 times.