Oldtown climbs on KL listing debut
tt! dah jual kopitiam ke belum... ke masih hold?
tak berapa kencang lah Oldtown first day listing...huhu
Published: 2011/07/13
OldTown Bhd, which made its debut on Bursa Malaysia's Main Market today with a premium of 13 sen against its initial price offer (IPO) of RM1.25, is optimistic that the performance is a confidence vote for its growth potential.
At the opening bell, 3.85 million shares were traded.
"We are excited and pleased with the opening price given the uncertain global market. The market's evident confidence shows our position is strong as a home-grown brand," its chairman, Datuk Dr Ahmed Tasir Lope Pihie told reporters at the company's listing ceremony today.
The company intends to continue growing in strength, by leveraging on its established brand name, comprehensive distribution network and proven business model as an integrated coffee beverage manufacturer and cafe operator.
"Together with the listing, we are opening three new outlets today, namely in Sungai Buloh, Selangor and Jalan Pahang in Kuala Lumpur as well as Miri, Sarawak.
"We will open two more outlets in I-City and Bandar Sri Permaisuri in the Klang Valley by the end of the month," Ahmed said, adding, the company planned to open 300 outlets in three years from the current 182 in Malaysia, Indonesia and Singapore.
The "kopitiam" chain operator and instant beverage mix manufacturer expects to raise RM79.2 million from its IPO, of which RM52 million is to be invested in a new plant in Ipoh to take over its existing food processing operations.
Of the proceeds raised, RM38.1 million will be channeled for capital expenditure, including financing the construction of the new plant, the opening of 27 new cafes and purchasing machinery and equipment.
Meanwhile, RM19.7 million from the proceeds will be allocated to acquire companies not yet owned by OldTown, RM10.5 million for working capital, RM5.9 million for repayment of borrowings and RM5 million for listing expenses.
The IPO encompasses a public issue of 63.4 million new ordinary shares and an offer-for-sale of 33 million vendor shares. -- Bernama