EcoFuture gains 10.5 sen on debut


  • Business
  • Wednesday, 12 Jan 2005

ECOFUTURE Bhd ended its debut trading day on the Mesdaq market yesterday with 10.5 sen gain against its initial public offering (IPO) price of 25 sen on volume of 28.2 million shares, after opening 15 sen higher at 40 sen. The share price touched an intraday high of 50 sen. 

The oil palm biomass technologist expected an annual growth of 70% in net profit for the next three years, following expansion plans for biomass products, independent director Bryan Wong Wye Pong told reporters after the company's listing ceremony in Kuala Lumpur .  

The remaining 30% would be generated by the milling business, he added. The gross margin for biomass products is about 60%-70%.  

For the financial year ended December 2003, EcoFuture registered a net profit of RM2.05mil on the back of RM81.44mil turnover. 

Yeo Kim Luang pointing to the opening price of EcoFuture while otherdirectors look on.

Managing director Yeo Kim Luang said EcoFuture planned to invest RM25mil-RM30mil in a new plant to make pulp from oil palm empty fruit bunches. The investment would be mainly funded by bank borrowings. 

The new pulp-making factory in Johor, which is expected to be completed by the end of this year, will start production by March 2006. EcoFuture has started talks with several local paper manufacturers to sell them the pulp. 

Additionally, RM6mil from the RM10.9mil listing proceeds would be used for the packaging material manufacturing plant in Segamat to increase production capacity by 50%, Yeo said. 

 EFUTURE :  [Stock Watch]  [News]

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
   

Did you find this article insightful?

Yes
No

Next In Business News

Blackstone-backed Patria eyes expansion in Latam, Asia
METALS: Tin, aluminium, copper prices down
Oil price falls on China's COVID-19 cases, high crude build
IBM, Intel slump weighs on Wall St as coronavirus concerns rise
GLOBAL MARKETS-Weak data, earnings drag stocks lower
Getting through tough times together
Keeping the economy moving with stimulus
How economic stimulus matters for countries
Short Position - Siletrra, AirAsia, ESG
The changing Asean banking landscape

Stories You'll Enjoy