KUALA LUMPUR (Aug 23): Shares of EPB Group Bhd (KL:EPB) climbed 16.07% in their trading debut on Friday after the food processing and packaging machinery firm’s initial public offering (IPO) on the ACE Market raised RM62.48 million.
EPB opened at 65 sen apiece on a volume of 27 million shares versus its IPO price of 56 sen. The stock was trading at 61 sen at 9.18am after more than 50 million shares changed hands. The country’s benchmark index was up 0.08%.
Demand during its IPO was strong, especially from retail investors. The IPO’s public tranche oversubscribed by 61.08 times. The Bumiputera portion was oversubscribed by 45.63 times, while the remaining public portion was oversubscribed by 76.53 times.
Shares set aside for eligible persons, Bumiputera investors, and select investors offered through private placement were fully taken up.
EPB is primarily engaged in designing, customising, fabricating, integrating and automating production lines for food manufacturing and processing companies. The company is also involved in the trading of cellulose casings, and the manufacturing and trading of flexible packaging materials.
Malaysia is EPB’s major market, while the Philippines and Indonesia are its biggest export markets.
The sale of new shares raised RM40.07 million, which will be mainly used to fund its factory expansion, repay bank borrowings and bolster working capital.
The offer-for-sale, meanwhile, raised RM22.40 million, which will accrue entirely to the selling shareholders, including managing director Yeoh Chee Min.
Malacca Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.