Thursday February 7, 2013

China Auto continues slide

PETALING JAYA: Newly-listed China Automobile Parts Holdings Ltd (CAP) continued to extend its losses, shedding a hefty 16 sen to 52 sen yesterday.

The stock had succumbed to selling pressure on Monday, falling below its initial public offering price of 68 sen.

CAP, which was listed last Wednesday, had surged 88% to RM1.28 on the first trading day but did not hold on to the gains even on its debut day, finishing at 78 sen.

It was the second most actively traded counter yesterday, with close to 77 million shares changing hands.

CAP raised RM61.2mil from its public issue of 90 million new shares, and of the total gross proceeds, RM25mil would be used to expand its production centre, RM6.1mil to increase its production capacity, RM6mil for marketing and branding, RM7.2mil for listing expenses and the remaining RM16.9mil for working capital.

Its public issue of 30 million new shares for the public was oversubscribed by 2.36 times.

It is principally involved in the manufacturing, marketing and trading of automobile chassis components such as wheel-hub bolts, wheel axles, steel pins, unbolts and torque-rod bushings for heavy automobiles.

The products are distributed in 17 provinces in China as well as in Indonesia, the Philippines, the United Arab Emirates and Saudi Arabia.

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