KUALA LUMPUR (Nov 25): Polymer Link Holdings Bhd (KL:POLYMER) ended its maiden day on the ACE Market on a flat note amid weaker broader market conditions.
The stock opened at 25 sen, the same as its initial public offering (IPO) price. The stock was rangebound between a low of 24 sen and high of 26.5 sen throughout the day, before closing at 25 sen after more than 55 million shares changed hands.
At its last price, Polymer Link is valued at RM140 million.
The IPO drew strong demand from investors, with the public portion oversubscribed by 48.74 times.
The plastic powder manufacturer raised RM24.3 million from its public issue of 97.15 million new shares and 24.08 million existing shares were offered for sale by its shareholders.
Established in 2011, Polymer Link specialises in the formulation, compounding and grinding of plastic powder for rotational moulding applications. It serves customers in Malaysia and India. The group was previously listed on the LEAP Market before voluntarily delisting in 2020 to streamline its operations.
Post listing, Polymer Link is prioritising growth in Australia, where it plans to rent a warehouse near the Port of Brisbane to enhance its operational efficiency and reduce order fulfilment times. The facility will serve as the group’s distribution hub in the country. The group is also planning to strengthen its presence in Europe by appointing a representative in Poland to drive market development in the region.
Funds raised from the IPO will go towards the Brisbane warehouse, the purchase of new machinery and equipment, the establishment of a new production line, and additional working capital, with a portion allocated to listing expenses.
Proceeds from the offer for sale will accrue to major shareholders — group chief executive officer Koh Song Heng and his wife Teoh Lee Tean — as well as Argel Joseph Baculo Adarlo, Geeslin Montemayor Adarlo and Dr Paul James Nugent. Koh’s sons, who hold senior management roles, did not sell shares.
Following the listing, the Koh family’s combined stake has been diluted to 24.3%, while the Adarlos each now hold 11.7%.
Hong Leong Investment Bank Bhd is the principal adviser, sponsor, sole placement agent and sole underwriter for the IPO.
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