The company’s shares began trading at RM2.05 each, which was RM1.42 above its offer price of 63 sen, giving it a market capitalisation of RM1.28 billion.
The market capitalisation at the issue price would have been a more modest RM400.81 million.
The shares allocated to the Malaysian public were oversubscribed 77.05 times and those for the Bumiputera category were oversubscribed 46.11 times.
Unsurprisingly, Oppstar saw 75.12 million shares change hands within the first 30 minutes of the trading day.
Oppstar already received a boost ahead of its debut. Yesterday, UOB Kay Hian called a “buy” with a target price of RM2.28, giving it a 261.9% premium, which is not too far off today’s opening price.
In its own research note on Tuesday UOB Malaysia Bhd forecast a three-year net compound annual growth rate (CAGR) of 35% from the 2022 financial year (FY22) at a price-to-earnings to growth (PEG) ratio of 0.5 times.
As a matter of fact, all research houses have given Oppstar a target price of at least 19.5 sen above its issue price.
Oppstar CEO Ng Meng Thai said the IPO would enable Oppstar to expand its existing capabilities in IC design to meet future demand.
The company will use RM50 million of the proceeds off the IPO to expand its workforce and another RM25 million to set up new offices.
The company will also invest RM12 million in research and development and another RM12.65 million will be used as working capital.
The Penang-based semiconductor company has, in fact, raised RM339.23 million from the IPO, more than twice the RM104.25 million it set out to do.
Apart from designing integrated circuits, Oppstar also specialises in advanced node technology and other services in the front end of the semiconductor industry.
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