OFFSET packaging printing specialist HPP Holdings Bhd made its debut on the ACE Market of Bursa Malaysia as the first listing this year.
The company which fetched an initial public offering (IPO) price was of 36 sen/share saw an over-subscription of 33.44 times by the Malaysian public.
All-in, HPP raises proceeds in excess of RM31.9 mil, of which RM13 mil will be utilised for capital expenditure such as acquisition of printing machines and repayment of bank borrowings (RM7.8 mil), working capital (RM5.2 mil), and sales and marketing expenses (RM2 mil). The remaining proceeds of RM3.9 mil will be for defrayment of IPO expenses.
“We possess the ability to transform a vision into attractive packaging design to communicate our clients’ brand identity to consumers,” HPP’s non-independent non-executive chairman Lau Kim Wah told a virtual listing ceremony.
“This IPO will give us the platform to realise our aspirations and accelerate our expansion plans.”
Commenting on the IPO landscape in 2021 last November, Deloitte Malaysia disruptive events advisory leader Wong Kar Choon expects the local capital market to remain robust even as the economy is impacted by drawn out lockdowns.
“In view of the active retail participation in the market, companies are thinking that it’s a good option for them to raise capital,” he told a virtual media conference on Deloitte’s perspectives on Southeast Asia’s IPO market performance and outlook for 2021.
“Companies are trying to plan ahead in terms of going for listing and trying to upgrade their digital platform to have a bigger market outreach.”
Bursa Malaysia mustered IPO fund raising of US$481 mil (RM1.96 bil) in the first 11 months of 2020, surpassing the US$447 mil raised in 2019.
The local bourse scored the biggest boost from the listing of Mr DIY Group (M) Bhd which raised US$362 mil, making it the largest listing in three years.
At 11am, HPP was up 19.5 sen or 54.2% at 55.5 sen with 117.27 million shares traded, thus valuing the company at RM215 mil. The counter had traded between an intraday low of 51 sen and 60.5 sen. – Jan 20, 2021
