Business · Malaysia Bureau
Evocom shares tumble 30% on Bursa Malaysia's ACE Market debut
The logistics firm's stock fell sharply below its initial public offering price on its first day of trading, closing significantly lower than the 18 sen offer price.
LSN Malaysia ·
Evocom, a logistics services provider, saw its shares decline substantially during its debut on Bursa Malaysia's ACE Market, with prices dropping as low as 12.5 sen—representing a 30% fall from its IPO price of 18 sen per share.
The sharp decline occurred on the company's first trading day, signaling investor caution towards the listing. The significant gap between the offer price and opening trade levels suggests limited initial demand for the stock among market participants.
ACE Market, which caters to emerging companies and growth enterprises, has seen varying performance from its recent listings. Evocom's weak debut contrasts with stronger showings from other new entrants, highlighting the selective appetite among Malaysian retail and institutional investors.
The logistics sector remains competitive in Malaysia, with established players controlling significant market share. New entrants like Evocom face the challenge of differentiating their services and building investor confidence in their business model and growth prospects.
The company's performance on subsequent trading days will be closely watched to determine whether the initial decline represents a temporary adjustment or reflects broader market concerns about its valuation and operational fundamentals.