POLY Tower Ventures Bhd made an impressive debut on the KLSE second board yesterday, its shares opening at RM1.50, a 66% premium over its issue price of 90 sen.
The counter rose to a day high of RM1.76 before closing at RM1.49 on volume of 13,154,800 shares.
Chairman Datuk Syed Abdul Rahman Syed Abdul Kadir told reporters after the listing ceremony in Kuala Lumpur yesterday that the company was pleased with the response from investors and with the opening premium, which “met the company's expectations”.
Poly Tower, a consumer and industrial plastic bags producer, saw its initial public offering of three million shares oversubscribed by 74.59 times.
Managing director Lew Chin Kwee said the RM9mil proceeds from the listing exercise would be mainly used to upgrade the company's production facility in Klang. Future plans include expansion of its overseas market.
Currently, 57 plastic extrusion machines produce, among other things, customised and specialty shopping bags as well as garbage disposal and biodegradable bags.
The company's customers consist of supermarkets, hypermarkets, retail chain stores, convenience shops and fast food outlets.
Poly Tower exports about 95% of its output to 16 countries including Britain, Japan, Taiwan, Czech Republic, South Africa, Australia and New Zealand.
Lew said the company was looking for an area for its sales office in New York – and another in Angola – in a bid to expand its overseas market.
Having a direct presence in New York and Angola would significantly help Poly Tower achieve double-digit growth in its export of plastic bags and films to the US and Africa next year.
Exports to the US and Africa currently account for 3.5% and 14.5% respectively of its total revenue.