KUALA LUMPUR (Jan 31, 2013): China Automobile Parts Holdings Ltd (CAP) made an impressive debut on the Main Market of Bursa Malaysia yesterday, with the stock opening with a gain of 18% or 12 sen to its issue price on strong investor interest.
The automobile chassis components maker, which had fixed an issue price of 68 sen per share, finished at 78 sen, a gain of 14.7% or 10 sen. A total of 192.3 million shares were traded, making it the most active stock.
"We have confidence in terms of the market and the growth of company," its managing director Terry Li told a press conference after its listing ceremony, which was witnessed by Deputy Finance Minister Datuk Dr Donald Lim, here yesterday.
CAP is the ninth China company to list on Bursa Malaysia. It recorded an over-subscription rate of 2.36 times for the 30 million shares that were made available to the public.
Despite the lackluster share performance of eight other listed China-based companies here, CAP seems to be off to a strong start.
"The automobile industry will see stable and rapid development in the next few years. In China and Southeast Asia especially, it is a mature and active industry. The prospects are good with sound investor confidence and positive feedback from customers," said Li.
CAP is currently identifying the location for its representative office in Malaysia, which will be in the central business district. It expects to set up office within six months.
The representative office will focus mainly on investor relation programmes as well as interaction with the media, fund managers and analysts.
Li said the company will expand its production capacity in China, while any merger and acquisition would only be part of a long term plan. However, there is possibility of partnerships between CAP and Malaysian companies in the automobile-related industry.
