KUALA LUMPUR (Jan 13): First listing of the year, Semico Capital Bhd (KL:SEMICO) ended its maiden trading day on Bursa Malaysia's ACE Market with a 50% gain on Tuesday.
The toys, collectibles and arcade machine supplier opened at a premium of 80% at 45 sen, compared with its initial public offering (IPO) price of 25 sen. The stock hit an intraday high of 49 sen before easing to close at 37.5 sen, still up 12.5 sen or 50%.
About 132 million shares changed hands, making it the second most actively traded stock of the day.
At its closing price of 37.5 sen, the group’s market capitalisation stood at RM135 million.
The company’s IPO was oversubscribed by 28.09 times, reflecting investor interest in the group’s toys, collectibles and arcade machine businesses.
Proceeds raised from the IPO will be used mainly to expand its toys and collectibles segment, including increasing inventory of popular and trending items and diversifying its product range. Part of the funds will also be channelled towards expanding its arcade and amusement machine business.
In addition, Semico plans to replace 55 of its existing arcade and amusement machines, such as claw machines and racing games. The group currently owns 650 machines, with more than 100 that are over five years old and fully depreciated.
Founded around two decades ago, Semico started out in the trading of video game arcade and amusement machines before expanding into toys and collectibles distribution. It distributes products to various stores from 68 brands — including Pop Mart.
“Moving forward, we will continue to be guided by our belief that play creates moments, and moments create lifelong memories. With this purpose at our core, we look ahead to the future with confidence,” said chief executive officer Tai Lee Chuen during his speech at the listing ceremony.
The IPO comprised a public issue of 92.67 million new shares, alongside an offer for sale of 18 million existing shares, with proceeds from the latter accruing entirely to a vehicle controlled by Tai and his wife, executive director Ang Sew Fong.
Affin Hwang Investment Bank Bhd is the IPO’s principal adviser, sponsor, sole placement agent and sole underwriter.