Unique IPOs enter the fray
THE list of IPOs this year include several interesting newcomers in terms of industry and interest.
Dairy producer Farm Fresh Bhd (Farm Fresh) debuted on March 22 on the Main Market of Bursa Malaysia at RM1.70.
Farm Fresh, through the public issue portion of its initial public offering (IPO), raised a total of RM301 million, of which RM140 million is intended for establishing a new manufacturing hub, a new dairy farm, and an integrated facility in Malaysia.
Farm Fresh group managing director and group chief executive officer Loi Tuan Ee said the world saw the rise in raw material prices and the company’s competitors had increased prices for milk products three times in the past two years.
Loi said for the financial year 2023, Farm Fresh will launch several new products such as the Grow Up Milk intended for children , barista oat milk and fresh milk, and plant-based milk.
“With the support and participation of our stakeholders, we intend to venture into new regions and markets to extend our presence. With the growing consumer demand for fresh milk products, I am confident Farm Fresh can deliver quality products and value to consumers,” Loi said.
Another IPO of particular interest is pawnshop operator Pappajack Bhd, which debuted on the ACE Market of Bursa Malaysia on April 1, rising to a high of 40 sen – a 10 sen or 33.33 per cent premium over its IPO price of 30 sen.
The counter, which was the most actively traded stock across Bursa that day, saw 202.3 million shares traded that day.
The group’s managing director and chief executive officer Lim Boon Hua said at a virtual press conference that it aims to transfer to the Main Market in the next two to three years.
On January 25, consumer electrical & electronics (E&E) retailer Senheng New Retail Bhd debuted on the Main Market, opening at 90 sen and rose to as high as RM1.01 before closing at 85.5 sen, representing a 21.5 sen or 20.09 per cent discount from its IPO price of RM1.07.
Senheng was also the day’s second most actively traded stock on the local bourse, with 163.55 million shares changing hands. The trading volume was equivalent to 10.9 per cent of its issued share capital of 1.5 billion.
Senheng is the largest consumer electrical and electronics chain retailer in Malaysia with a chain of 105 physical stores – operating under four different store concepts, namely Grand Senheng Elite, Grand Senheng, Senheng and senQ – which are located throughout Malaysia and online platforms, while carrying around 10,000 stock-keeping units from over 280 different brands, according to its prospectus.
The glitz and shine of jeweller YX Precious Metals Bhd (YXPM) came through on Bursa Malaysia’s ACE Market on June 23, as the most-active stock on Bursa, registered a trading volume of 129.95 million shares after trading between 26.5 sen and 30.5 sen.
The jeweller, which saw its share price close at 27 sen at 5pm, plans to increase its market share in Malaysia because there is still a lot of room for improvement as YXPM only has a 6.1 per cent share in the Malaysian jewellery market.
“Right now, we are planning to increase the market share in Malaysia – there is no plan to increase the overseas market share tremendously because we only have 6.1 per cent market share. We still see a lot of room for improvement, even in the local market.
“We are now serving around 300 (retail) customers and we hope to serve more with the (IPO) funds coming in,” YXPM managing director Ng Sheau Chyn said at a press conference after its listing.
YXPM is a 70 per cent-owned subsidiary of Bursa’s Main Market-listed jeweller Tomei Consolidated Bhd.