BUSINESS

CEKD BHD MAKES STRONG DEBUT ON ACE MARKET AT 60 SEN

29/09/2021 11:38 AM

KUALA LUMPUR, Sept 29 -- Die-cutting solutions provider CEKD Bhd made its debut on the ACE Market at 60 sen today, notching a premium of 12 sen or an increase of 25 per cent over its initial public offering (IPO) price of 48 sen.

At the opening bell, the counter saw 6.29 million shares changing hands.

Its independent non-executive chairman Datuk Zulkifli Adnan said the IPO was expected to give the group more visibility and aid in the expansion of the business.

“We have plans in the pipeline post-listing to expand our operations and manufacturing services in our existing markets as well as solidify our position in Southeast Asia and the Middle East.

“We believe that there are plenty of opportunities that we can tap into in these markets due to the growth in the electrical and electronics (E&E), plastic and packaging, automotive as well as textile and leather industries,” he said in a speech during the virtual listing ceremony today.

On Sept 21, CEKD announced that the public portion of its IPO was oversubscribed by 131.61 times.

The group aimed to raise RM24.28 million through its IPO exercise.

CEKD is a manufacturer of die-cutting moulds and trader of related consumables, tools and accessories mainly to the paper printing and packaging industry, electronic and electrical industry, and other industries such as automotive, plastic packaging, textile and leather industries.

Managing director Yap Kai Ning said from the proceeds, RM8.8 million would be used to expand its current premises for the acquisition of a factory for wholly-owned subsidiary Hotstar (M) Sdn Bhd to increase production capacity.

“We would like to invest in two new factories in Kepong to consolidate the Hotstar operations to improve productivity. Hotstar’s operations are currently conducted at three different locations. So with the consolidation, we are sure that we can increase our efficiency and increase management ability as well,” she said.

On the rest of the proceeds, Yap said RM3 million would be used to purchase new machinery, RM1.3 million for upgrade and development of computer software and server, and RM4 million for repayment of bank borrowings.

The remainder will be used for marketing activities, general working capital and listing expenses.

“We will be investing in technology, software and new machineries to increase our capability due to higher demand of the accuracy of die-cutting moulds, the fast turnover of the packaging industry and the sophisticated packaging needed.

“We also will invest in software and system to increase automation in certain operation process in line with the Industry 4.0 to have more automation in our business and it will be one of the key investments to cater for our future growth,” she said.

Along with the rapid development of e-commerce, Yap said the boost of e-commerce would lead to higher demand for packaging, such as paper boxes and corrugated boxes, as well as eco-friendly packaging opted by some e-commerce players.

“As they will need our die-cut moulds for their packaging, it will also provide us opportunity for innovation in the packaging industry to enhance the packaging design and product safety, improve the unboxing experience and optimise the packaging for last-mile delivery,” she said.

-- BERNAMA

 


BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; www.bernama.com; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 IFLIX channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies.

Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial

© 2024 BERNAMA   • Disclaimer   • Privacy Policy   • Security Policy