Buying frenzy catapults Stratus Global to 260% post-IPO gain

 Its shares surged as much as 30% to a new all-time high of RM2.99 today.

Stratus Global’s shares have surged 260% from its initial public offering price of 80 sen following its listing on July 21.

PETALING JAYA:

Stratus Global Holdings Bhd soared to another new record high today as investors snapped up shares of the recently-listed semiconductor automation specialist in a buying frenzy.

The stock jumped as much as 30% or 69 sen to RM2.99 in the afternoon session before paring its gains to close 25% higher at RM2.88, valuing it at RM3.6 billion.

At this price, it has surged 260% from its initial public offering (IPO) price of 80 sen since its Main Market debut on July 21. This was the second time this week that it recorded a new all-time high, having touched a new high of RM2.36 on Tuesday.

It was the second-biggest gainer on Bursa Malaysia, and the seventh most traded stock with 47.1 million shares changing hands, the most since listing day.

Today’s surge in the share price occurred despite there being no positive news flow or announcements on the Penang-based company.

Nevertheless, interest in the company 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 the 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. - FMT