PETALING JAYA: Ace Innovate Asia Bhd (AIAB) opened at 27 sen on its LEAP Market debut, a 3.8% premium over its issue price of 26 sen.

At 11.12am, the stock stood at a high of 29 sen, an 11.5% increase from its issue price with 16,000 shares exchanging hands, giving it a market capitalisation of RM87 million.

The public offering raised RM10.4 million for the group, which is involved in physical trading of gold product.

At the listing ceremony, AIAB executive director and CEO, Go Yoong Chang commented that the gold bullion trading industry in Malaysia and in the region continues to show promising growth prospects.

“We are confident that Ace Innovate will be well-positioned to ride on the industry’s growth in the long-term,” he said in a press release.

The CEO highlighted that with the positive global trends, it is strives to be one of the leading players in gold bullion trading in Malaysia, via e-commerce or physical trading.

“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 said.

Aside from that the group is also involved in the provision of assaying services and is a market maker for the Bursa Malaysia Derivatives Gold Futures Contract and PT Bursa Komoditi dan Derivatif Indonesia.

Of the proceeds raised by the exercise, RM8.96 million will be utilised for working capital, RM200,000 have been earmarked for enhancement of its office safety features and RM64,000 have been allocated for advertising and marketing expenses.

While, the remaining RM920,000 will be used to defray its listing expenses.

Subsequently, Ace Innovate aims to raise awareness for its products and services via strategic advertising and promotion campaigns and expand its customer base.