Logistics firm Evocom falls 30% on Bursa debut

Evocom Bhd's initial public offering (IPO) on Bursa Malaysia's ACE Market saw a sharp decline of up to 30% on the day, trading below its IPO price of 18 sen. The stock opened at 15 sen and fell to a low of 12.5 sen, 30.5% or 5.5 sen under its IPO price. It later closed at 13 sen, down 5 sen or 27.8% from its opening price. The logistics and workforce solutions provider now has a market capitalization of RM59 million.

Despite this lackluster debut, Evocom's shares were among the most traded on Bursa Malaysia, with 71.8 million shares changing hands. The public portion of the IPO was only slightly oversubscribed, while a portion was undersubscribed and had to be redistributed to other investors. The company raised RM20.5 million from the IPO, with a significant portion allocated to working capital and technology expansion.

CEO Ian Tan sold his 22 million shares, earning RM3.96 million in the process. The majority of Evocom's revenue comes from SPX Express, the in-house delivery service for e-commerce platform Shopee, which accounts for over 80% of annual revenue.