KUALA LUMPUR (Dec 8): Johor-based tiles retailer BMS Holdings Bhd (KL:BMS) fell sharply in its maiden trading session on the ACE Market of Bursa Malaysia on Monday, marking the third-worst debut performance among initial public offerings (IPOs) listed so far this year.
BMS' shares started the day at 19.5 sen — already 11.36% below its IPO price of 22 sen — and extended its losses throughout the afternoon. The stock hit an intra-day low of 17 sen after 3.30pm and closed at 17.5 sen, down 4.5 sen or 20.45% from its IPO price, with 168.87 million shares changing hands.
At the last traded price, BMS Holdings was valued at RM269.5 million.
The decline follows the Johor-based building materials distributor’s relatively tepid IPO. Applications from public investors were just a little over twice the number of shares available for subscription, one of the weakest this year.
The IPO raised RM80.1 million from newly issued shares, while an additional RM34.3 million was raised through an offer for sale by existing shareholders.
On a percentage basis, the biggest listing flop so far this year remains chemical manufacturer SumiSaujana Group Bhd (KL:SUMI), which closed 25% below its IPO price on April 9. Prior to that, pipes supplier Saliran Group Bhd (KL:SALIRAN) recorded a 22.2% decline on its debut on March 13.
BMS operates across retail, wholesale and project sales of building materials, primarily tiles and stone surfaces, including porcelain and ceramic tiles, engineered stones, natural stones and mosaics. The company also supplies complementary bathware and kitchenware products.
About 43% of its IPO proceeds have been allocated to expand its retail and distribution footprint, including new showrooms in Seremban, Selangor and Kuala Lumpur, as well as a new distribution centre in the Klang Valley.
It will also acquire electric vehicle forklifts and upgrade existing facilities, including its retail outlets in Kota Damansara, Kepong and Klang, alongside its Pasir Gudang distribution centre.
Another 21% will be used to enhance digital infrastructure through the implementation of an upgraded enterprise resource planning system and warehouse management system. The remaining funds will be channelled towards working capital, marketing activities and listing expenses.
Proceeds from the offer for sale, meanwhile, went to a group of more than 10 shareholders, including managing director Ang Kwee Peng and executive director Lee Kok Chuan. The duo co-founded the business more than three decades ago.
Alliance Islamic Bank is the principal adviser, sponsor, sole underwriter and placement agent for the IPO.
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