Oldtown up in early trade, most actively traded(update)


  • Business
  • Wednesday, 13 Jul 2011

PETALING JAYA: Cafe chain operator and coffee beverage manufacturer Oldtown Bhd made its debut on the main market of Bursa Malaysia at RM1.38, up 13 sen against its initial public offering price of RM1.25.

At 9.30am, it was the most actively traded stock, rising 8 sen to RM1.33 with 27 million shares traded.

Oldtown exports its instant beverage mixes to 13 countries, including Singapore, China, Hong Kong, the United States and Taiwan. According to reports, it plans for deeper penetration into China by the fourth quarter.

Bernama reported OldTown Bhd is optimistic that the performance is a confidence vote for its growth potential.

"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 here 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 For latest Bursa Malaysia indices, charts and other information click here

For latest Bursa Malaysia indices, charts and other information click here


Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 7
Cxense type: free
User access status: 3
   

What do you think of this article?

It is insightful
Not in my interest

Across The Star Online