KUALA LUMPUR (Oct 29): Fortified food and supplement maker OB Holdings Bhd (KL:OBHB) ended 4.17% higher on its ACE Market debut, the same as its opening price when trading kicked off.
The counter debuted at 25 sen, up 4.17% against its initial public offering (IPO) price of 24 sen. Its share price ended flat at 25 sen as the trading day closed.
At the closing price of 25 sen, the company is valued at RM97.9 million. The counter was the second most actively traded stock on the bourse, with 63.9 million shares changing hands.
At its IPO price of 24 sen, the company was valued at a price-to-earnings ratio (PER) of 17.09 times — based on its IPO market capitalisation of RM93.99 million and net profit of RM5.5 million for the financial year ended May 31, 2024 (FY2024), or earnings per share of 1.4 sen per share.
Of the 32 stocks having debuted on the ACE Market this year, OB Holdings ranked 25th for the best-performing IPO on its listing day.
UUE Holdings Bhd (KL:UUE) led the list with a grand 189.58% gain, followed by Ocean Fresh Bhd (KL:OFB)(175%), Go Hub Capital Bhd (KL:GOHUB)(171.43%), Steel Hawk Bhd (KL:HAWK)(130%), and Kucingko Bhd (KL:KUCINGKO)(90%).
OB Holdings mainly manufactures the fortified food and dietary supplements under various house brands, as well as for third-party brand owners.
The company also offers contract packing services for various products such as milk powder, tea leaves, honey, herb powder, fruit powder, and liquid chlorophyll into retail packaging sizes, along with the trading of milk powder and other activities.
Its IPO comprised a public issue of 120 million new shares, of which 19.6 million were made available to the Malaysian public, followed by 7.8 million to eligible directors. The remainder were reserved for select investors and approved Bumiputera investors. There was no sale of existing shares.
More than half of the IPO proceeds of RM28.8 million will be allocated to repay bank borrowings incurred from the construction of a new factory in Serendah. The company will utilise RM3 million for working capital, RM1 million for marketing, and RM4 million to cover IPO-related expenses.
Read also:
OB Holdings edges higher on ACE Market debut after RM29 mil IPO
OB Holdings to more than double production capacity with new factory
OB Holdings’ 19.58 mil IPO shares for public oversubscribed by 109 times
OB Holdings signs underwriting agreement with Alliance Islamic Bank for ACE Market IPO
Supplement maker OB Holdings to raise RM28.8m from ACE Market IPO