ACE Innovate gains one cent on LEAP market debut

ACE Innovate gains one cent on LEAP market debut
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KUALA LUMPUR (Jan 7): ACE Innovate Asia Bhd (AIAB)'s share price rose as much as one cent or 3.85% to 27 cent so far today on the gold bullion trader's maiden trading day on Bursa Malaysia's LEAP Market. AIAB shares were listed at 26 cent each.

The counter is the second company to be admitted into the LEAP market this year. At the opening bell today, about 500 shares were transacted.

At a press conference, AIAB executive director cum chief executive officer Go Yoong Chang said the company's prospects are better when markets are volatile, as gold prices and trading interest for gold products tend to move higher. 

As the market volatility persists, he expecting the group to record double-digit growth for topline in the near future as the trading volume for gold products is higher.

The group saw its revenue surge 92.54% to RM1.09 billion in 2018, from RM565.47 million in 2017. Its net profit rose 10.47% year-on-year to RM4.75 million for 2018 from RM4.3 million, according to AIAB's listing information memorandum.

Based on the revenue generated from AIAB in 2018, the group garnered an industry revenue share of 8.8% in the year. The total bullion trading industry in Malaysia was estimated at RM12.4 billion in 2018.

Go said the gold bullion trading industry in Malaysia and the region continues to show promising growth prospects. He is confident that AIAB will be well-positioned to ride on the industry's growth in the long term, with its strong portfolio of customers.

"With these positive global trends, we are capitalising our efforts to be one of the leading players in gold bullion trading in Malaysia, both physical and via e-commerce. As such, we plan to use part of the proceeds raised from the listing and to enlarge our current business operations and pursue future opportunities in the industry," he added.

The company placed out 39 million shares to raise RM10.14 million. Upon listing, AIAB had a market capitalisation of approximately RM78.01 million based on its issue price.

The proceeds will be utilised mainly for the business and operational expansion, which include RM8.95 million (88.33%) for working capital, RM200,000 (1.97%) for enhancement of office safety features, RM64,000 (0.63%) for marketing and advertising expenses and RM920,000 (9.07%) for listing expenses.