KUALA LUMPUR: UOA Development Bhd, which carried out the biggest initial public offering (IPO) so far this year, had a disappointing maiden day on the stock exchange yesterday.
Shares of the property developer ended its brisk trading day at RM2.59 yesterday, 1 sen lower than what institutional investors paid under its IPO.
It was also the most active stock on the local bourse, with some 78 million shares changing hands.
Earlier, the stock had touched an intra-day high of RM2.62 a share, before sinking to an intra-day low of RM2.48.
Still, the closing price was above the RM2.52 per share it sold to retail investors.
Based on yesterday's closing price, its RM3.1 billion market value makes it the fifth biggest property developer after UEM Land Bhd, SP Setia Bhd, IJM Land Bhd and IGB Corp Bhd.
Chief operating officer David Khor told reporters after the listing ceremony that the company is optimistic of its stock performance.
"At this time, we are still happy with our share's performance," he said.
About two days ago, the group said it has already bought two pieces of land in Sri Petaling for RM50 million.
"We plan to build a high-end condominium on it, but details of the projects have yet to be finalised," he said.
Development is due to start in the fourth quarter of this year.
UOA posted a net profit of RM130 million for the first quarter ended March 31. Revenue stood at RM145.7 million.
It will also start developing properties that are friendly to the environment. "In line with the government's call to go green, we plan to integrate environmentally-friendly features in all of our commercial developments," Khor said.
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