30/01/2024 01:39 PM

KUALA LUMPUR, Jan 30 (Bernama) -- Rakuten Trade expected HE Group Bhd, which made its debut on the ACE Market of Bursa Malaysia today, to register core net earnings of RM14.6 million and RM17 million for financial year 2024 (FY2024) and FY2025 respectively.

As at 10.41 am, the company emerged among the most actively traded counters on Bursa Malaysia, rising 11 sen to 39 sen with 98.46 million shares changing hands. It opened at 43 sen for a premium of 15 sen from its initial public offering (IPO) price of 28 sen per share.

Rakuten vice-president of research Thong Pak Leng said in a note today that HE Group is in a net cash position as at the ninth month of FY2023 and is expected to remain so post-IPO.

“As of Dec 15, 2023, HE Group had a total outstanding order book of RM211.9 million which provided clear earnings visibility for the next 12 months.

“Meanwhile the company had a tender book of RM400 million as of January 2024 whereby 70-80 per cent are in the semiconductor and electrical and electronics (E&E) sectors while 10 per cent are in data centres. Management guided that its previous tenders had a success rate of about 30 per cent,” he said.

Last week, HE Group reported that its IPO has been oversubscribed by 63.35 times by the Malaysian public ahead of its listing on the ACE Market today.

The 22 million IPO shares made available for the Malaysian public received a total of 12,201 applications for 1.42 billion IPO shares, valued at RM396.37 million, representing an overall oversubscription rate of 63.35 times, said HE Group in a statement.

In a separate statement today, managing director Haw Chee Seng said the positive outcome of this IPO has not only affirmed the group's collective efforts but also served as a strong motivation for HE Group to move forward, capitalising on arising opportunities in the coming years.

“Fuelled by funds raised from our IPO, we are strategically positioned to implement our expansion plans. This includes our transformation into a single-point-of-contact mechanical, electrical and process (MEP) utility engineering service provider, enabling us to competitively bid for large industrial and commercial projects.

“In addition to opening new offices in Kulim, Kedah and Johor Bahru, which are set to be operational by 2025, we aim to strengthen our presence in these regions and generate more business opportunities. We also look forward to expanding our end-user industry coverage to include data centres,” he said.


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