Logistics firm Evocom falls 30% on Bursa debut

Evocom Bhd, a logistics and workforce solutions provider, experienced a sharp 30% drop in its share price on its debut trading on the ACE Market, trading at 13 sen, 5 sen below the IPO price of 18 sen. The counter opened at 15 sen but fell significantly below its initial public offering price. The logistics company, headquartered in Semenyih, Selangor, saw its market capitalization drop to RM59 million following the debut.

The public portion of the IPO, oversubscribed by just 3.6 times, raised RM20.5 million from the issuance of 113.9 million new shares. Over one-third of the proceeds were allocated for working capital, with another 30% for technology application development and expansion of its air freight transhipment business. Seven percent was set aside for the new headquarters in Nilai, Negeri Sembilan, and another 7% for general working capital.

The remaining funds were used to cover listing expenses. CEO Ian Tan sold RM3.96 million worth of his shares. The company's SPX Express delivery service, the in-house arm of e-commerce platform Shopee, accounts for over 80% of its annual revenue.