TT Vision opens with massive 338% premium on ACE Market debut
Pautan
KUALA LUMPUR: Technology solutions company TT Vision Holdings Bhd made a huge statement on its impressive debut on the ACE Market today following its voluntary delisting on the LEAP Market.
The stock opened at RM1.49, a huge premium of RM1.15 or 338.23% over its issue price of 34 sen a share, giving it a market capitalisation of RM697.3 million.
It reached as high as RM1.67 at 9.03am, and by the mid-day close had eased to RM1.35 with 141.6 million shares traded.
The Penang based group is primarily involved in the development and manufacturing of machine vision equipment and provision of related products and services within the semiconductor industry.
Rakuten Trade anticipates the group will rake in net earnings of RM14 million and RM15 million for the financial year ending Dec 31, 2023 (FY2023) and FY2024 respectively.
The brokerage said in a note today this is underpinned by the “optimism on China’s reopening, coupled with mass adoption on industrial automation”.
It said TT Vision’s key strength includes its research and development (R&D) capabilities to innovate and develop products alongside IT protection, which will allow it to maintain its competitiveness in this ever-evolving industry.
The R&D efforts have successfully helped to obtain two utility innovation patents valid up to 2031, Rakuten Trade added.
Getting a boost from China’s reopening
TT Vision chief executive director Goon Koon Yin said today the listing comes at an opportune time, and it sought to capitalise on its listing status to sustain growth momentum going forward.
“We aim to continue growing our company to greater heights and increase our market share in other prominent semiconductor, optoelectronics and solar cell markets such as the US, Germany, South Korea, China and Malaysia,” he told reporters here today.
He said the reopening of China is a “good thing for everybody”, in particular for TT Vision because of its business with China.
“The most crucial part is that China is still growing despite all these headwinds, and are pumping money into semiconductors,” he added.
The IPO involves a public issue of 84.5 million new shares to raise RM28.73 million, and an offer for sale of 10.5 million existing shares to selected investors for RM3.57 million by way of private placement.
From the RM28.73 million proceeds expected to be raised from the public issue, the group will allocate RM10.68 million for working capital and RM8 million for its R&D expenditure. Some RM6 million will go towards repayment of bank borrowings and RM3.2 million to defray listing-related expenses.
The group is expected to have a market capitalisation of RM159.12 million upon listing based on its enlarged issued share capital of 468 million shares, and an issue price of 34 sen.
