From left: Sin-Kung Logistics Bhd executive director Adeline Ong, general manager Ameline Ong, executive director Angeline Ong and managing director Alan Ong (Photos by Shahrin Yahya/The Edge)

KUALA LUMPUR (May 15): Logistic services company Sin-Kung Logistics Bhd (KL:SINKUNG) ended its first day of listing on Wednesday with 7.7% gain after opening flat on its ACE Market debut.

The stock climbed as much as 19% to 15.5 sen from its initial public offering (IPO) price of 13 sen per share before closing at 14 sen after 394.07 million shares changed hands on Bursa Malaysia. At the closing price, Sin-Kung was valued at RM168 million based on an enlarged share capital of 1.2 billion shares.

Sin-Kung saw strong demand from investors during its IPO with the public tranche oversubscribed by 26.5 times. The Bumiputera portion was oversubscribed by 21.7 times, while the other public category was oversubscribed by 31.4 times.

Shares made available for its eligible persons were also fully subscribed. The shares allocated for selected investors through private placement to Bumiputera investors were also fully placed out.

From left: Sin-Kung Logistics Bhd directors Datuk Abdul Wahabi Abdullah, Datuk Md Hassim Pardi, Adam Muralidharan Abdullah and Datuk Mohamad Dalib, MD Alan Ong, executive director Angeline Ong, chairwoman Tan Sooi Mooi, ED Adeline Ong, director Lee Lean Suan and general manager Ameline Ong, and M&A Securities Sdn Bhd MD Datuk Bill Tan and head of corporate finance Gary Ting

The group currently owns about 460 commercial vehicles for trucking, container haulage, warehousing and distribution, as well as other logistics-related businesses. Its major customers include airlines, sales agents of airlines, local and international freight forwarders, manufacturers and online retailers.

Sin-Kung's IPO involves a public issuance of 200 million new shares and an offer for sale of 103.5 million existing shares.

The company plans to use the IPO proceeds totaling RM26 million to expand its warehousing and distribution services, repay bank borrowings, buy new commercial vehicles as well as for working capital and to pay for its listing expenses.

The sale of existing shares grossed RM13.5 million, which would go entirely to the selling shareholders Sin-Kung managing director Alan Ong and his sister Angeline Ong, who is an executive director.

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