Buying frenzy lifts Stratus Global to 260% post-IPO gain
The Penang-based semiconductor equipment maker closed 25% higher at RM2.88, valuing it at RM3.6 billion despite no fresh announcements.
Shares of Stratus Global jumped as much as 30% or 69 sen to RM2.99 in the afternoon session before paring gains to close 25% higher at RM2.88, valuing the company at RM3.6 billion.
At this price, the stock has surged 260% from its initial public offering (IPO) price of 80 sen since its Main Market debut on July 21. It was the second time this week that it recorded a new all-time high, having touched RM2.36 on Tuesday.
The counter was the second-biggest gainer on Bursa Malaysia and the seventh most traded stock, with 47.1 million shares changing hands — the highest since listing day.
The surge occurred despite there being no positive news flow or announcements on the Penang-based company.
Nevertheless, interest has been growing as investors welcome Stratus Global's growth prospects amid strong spending by semiconductor manufacturers on automation and production capacity, and positive market sentiment towards AI-linked stocks.
Earlier this week, Public Investment Bank (PublicInvest) said management expects the group's order book to expand by between two and four times over the coming year.
It noted that further order wins could provide upside to earnings in the coming quarters, supported by continued investment in wafer fabrication and semiconductor equipment.
Stratus Global's current share price has surpassed PublicInvest's 12-month target price of RM1.72 by 67%, following the post-listing rally.
The company, which specialises in automated material handling systems for the semiconductor industry, raised RM285 million through the IPO. The proceeds will be used to enlarge its production facilities, for research and development, overseas expansion, and as working capital. It operates two factories in Bayan Lepas, which are running near full capacity.
Stratus Global had closed 163.75% or RM1.31 higher than its IPO price on its debut.
The company was established in 1998 in the US by Ryo Narisawa, a 72-year-old Japanese who now serves as its CEO. Post-IPO, he holds a direct stake of 3.1% and another 41.6% through a private vehicle, Jiyuan Holding Sdn Bhd.
This article was produced with the assistance of artificial intelligence (AI), in accordance with our editorial policy.