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PETALING JAYA: Homegrown building materials wholesalers and distributors Unitrade Industries Bhd made its debut on the ACE Market of Bursa Malaysia Securities this morning, opening at 26.5 sen per share, 17.19% lower than its initial public offering (IPO) price of 32 sen per share.

The company had raised a total of RM100 million from the IPO, of which RM50.5 million (50.5%) will be deployed as working capital and RM39.8 million (39.8%) will go towards repayment of bank borrowings. Meanwhile, RM5 million (5%) is allocated for capital expenditure to set up a pipe fabrication centre, and the balance of RM4.7 million (4.7%) has been earmarked to defray listing expenses.

Unitrade managing director Nomis Sim Siang Leng said with the recent relocation to a warehouse double the size of its previous one, coupled with the IPO proceeds raised, it now has the capacity and capability to increase inventory volume and product range to meet the escalating demand for building materials from the construction sector.

“In addition, we will be among the first in Malaysia to build a new pipe fabrication centre to broaden our value-added service offerings to our customers. This facility will provide a long list of benefits to our customers, such as manpower reduction, acceleration of construction progress, and more efficient use of space at construction sites, to name a few,” he said in a statement today.

Nomis added that on a macro view, Unitrade is upbeat on the building materials industry which is buoyed by the acceleration and roll-out of major infrastructure projects.

“We have an established track record in supplying to large scale projects in the past and hence, we are confident in capitalising on these opportunities. Besides new projects, our products are heavily used in refurbishments, retrofitting, repair and maintenance works as well. As such, Unitrade plays a critical and holistic role in supporting the full lifecycle of buildings and infrastructures,” he said.

For the financial year ended March 31, 2022, Unitrade registered a net profit of RM43.2 million and revenue of RM1.29 billion. Unitrade intends to distribute dividends of up to 30% of its annual net profit to its shareholders.

M & A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise.

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