HSSEB (0185) - HSS Engineers opens at 58 sen amid cautious market

HSSEB (0185) - HSS Engineers opens at 58 sen amid cautious market

KUALA LUMPUR: HSS Engineers Bhd made a firm debut on the Ace Market of Bursa Malaysia on Wednesday, opening at 58 sen which was eight sen above its offer price of 50 sen.

At 9.01am, it was trading at 57.5 sen, up 7.5 sen. There were 10.70 million shares done.

Overall mood of the market was cautious as the FBM KLCI fell 4.17 points or 0.25% to 1,667.54. Turnover was 38.02 million shares valued at RM16.86mil. There were 93 gainers, 43 losers and 145 counters unchanged.

Its initial public offering (IPO) for the retail portion was oversubscribed by 21.71 times.

A total of 8,737 applications for 362.27 million new shares worth RM181.14mil were received from the Malaysian public for 15.95 million new shares that were made available for public subscription.

HSS Engineers provides engineering and project management services including engineering design, project management, construction supervision and building information modelling (BIM) services.

Mercury Securities Research had a target price of 60 sen, which was a conservative 10 sen above the offer price.

The research house said based on the favourable outlook and prospect for the engineering and project management services sector supported by positive growth in construction industry, coupled with HEB’s competitive advantages, “we believe the company is well positioned to capture growth particularly India market”.

Mercury Research said the target price of 60 sen was derived based on 15.7 times price-to-earnings of its estimated EPS of 3.8 sen for FYE Dec 31, 2016. The target price represents a potential return of 20.0% over the IPO price.

HSSEB (0185) - HSS Engineers opens at 58 sen amid cautious market