Malaysia: Eversafe Rubber’ Ace Market debut; UOA REIT stalls property acquisitions

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Eversafe Rubber Bhd, a tyre treading materials manufacturer, debuted on Ace Market of Bursa Malaysia on Friday at 46 sen, a 10 sen premium to its IPO price of 36 sen. Meanwhile, UOA Real Estate Investment Trust (UOA REIT) is holding back plans to acquire property this year amid a subdued market.

Eversafe Rubber makes Ace Market debut

Eversafe Rubber Bhd, a tyre treading materials manufacturer, debuted on Ace Market of Bursa Malaysia on Friday at 46 sen, a 10 sen premium to its IPO price of 36 sen.

The company raised a total of $3.93 million (MYR 17.28 million) in the IPO. The funds will be used to develop new manufacturing lines with enhanced automation systems, according to the company. It also wishes to establish intellectual property rights and branding initiative, particularly for the overseas market as it is expanding overseas.

The firm exports to over 20 nations that includes Australia and New Zealand while in Malaysia it enjoys a 27 per cent market share in the tyre retreading materials segment.

The company is looking to increase its export earnings and has plans to expand in South America. It also plans to have a warehouse in the Baltic area that has a port to cater to its operations in Eastern Europe and the UK.

UOA REIT to hold back acquisition plans

UOA Real Estate Investment Trust (UOA REIT) is holding back its plans to acquire property this year amid a subdued market, according to a report from The Edge.

UOA REIT that has six office properties in its portfolio is always on the lookout for investment opportunities as the REIT’s trading yield is a bit more permissible now, according to UOA Asset Management CEO Kong Sze Choon.

Nevertheless, the acquisitions in future will be concentrated within the Klang Valley as the region still holds “the best capital value for properties.” Also, the trust is not looking at overseas acquisitions in its portfolio.

“We do not foresee any major appreciation in office property prices so soon. If anything, the price would probably hang on to the current level,” Kong said.

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