KUALA LUMPUR (June 11): Cuckoo International (MAL) Bhd has cut its initial public offering (IPO) price to RM1.08 for both retail and institutional investors, confirming a report by The Edge in May that the company would make such a move.

The IPO price revision from the RM1.29 per share set previously followed the completion of the bookbuilding process under the institutional offering, according to the company's bourse filing on Wednesday. It will refund 21 sen to successful applicants under the retail offering.

Cuckoo International — the Malaysian arm of South Korean home appliance giant Cuckoo Homesys Co Ltd — is now projected to raise RM154.74 million from its IPO based on an unchanged public issuance of 143.28 million shares — down RM30.08 million from the initially forecasted RM184.83 million.

The Edge, in its May 14 report citing sources, wrote Cuckoo International was expected to cut its IPO price following a lukewarm response to its IPO.

The price cut comes after Cuckoo International pushed back its planned debut on the Main Market of Bursa Malaysia by two months, from April 30 to June 24, citing heightened global market volatility.

Cuckoo International’s move marked the second downward revision in IPO price this year, following Eco-Shop Marketing Bhd’s (KL:ECOSHOP) decision to cut its offer price by 6.6% to RM1.13 per share.

Eco-Shop, which saw an overall retail oversubscription of 0.96 times for 114.94 million shares, was listed on the Main Market on May 23. Against its IPO price of RM1.13 apiece, shares in the dollar-store retail chain have climbed 11.5% to RM1.26 at the time of writing.

The revised IPO price values Cuckoo International at a market capitalisation of RM1.55 billion, down from RM1.85 billion. Its shares are valued at a trailing price-to-earnings ratio of 17.7 times, based on its net profit of RM87.3 million for the financial year ended Dec 31, 2023 (FY2023), against 21.2 times on the prior RM1.29 per share IPO price.  

Cuckoo International's rescheduled retail and institutional offerings closed on June 5. Subscription figures for its retail offering have yet to be released.

Read also:
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