KUALA LUMPUR: Peterlabs Holdings Bhd opened with 0.5 sen premium but closed at 24 sen, six sen lower than its listing price of 30 sen yesterday. The ACE Market-listed company was the second most active stock of the day but it now joins other recent listings, Catcha Media Bhd and Hibiscus Petroleum Bhd, which had also seen their share prices drop below their issue prices.
PeterLabs executive director Dr Teo Kooi Cheng said the company had begun exporting its products now that it had appointed official distributors in Indonesia, Bangladesh, Sri Lanka, the Philippines and Saudi Arabia.
“The local market is already mature as our market share for animal feed additives is 19.1%. The focus for us now is overseas expansion,” Teo told reporters after the listing ceremony yesterday.
He said the move to be listed was to raise awareness of the company and its products, in line with the company's expansion plans.
Last year, PeterLabs poster net profit of RM5.9mil on revenue of RM40.7mil. The company expects a 15% to 20% growth this year with 5% of it coming from exports.
“We are also keen on exploring the acquaculture and ruminant sectors,” Teo said.
The company had earlier said it was hoping to raise RM4.5mil from its initial public offering (IPO) to repay existing bank loans. The gearing for the company, which stood at 0.44 times prior to the IPO, is expected to be lowered to 0.35 times this year.
PeterLabs is also targeting to spend only RM100,000 in capital expenditure (capex) this year compared with RM13mil last year as it has already invested substantially in its plant in Nilai. This year's capex will include research and development tie-ups with suppliers from France, the UK, the US, , China, Peru and India.
The new RM12.5mil plant started operation last month at 50% capacity. The livestock feed additives manufacturer and distributor hoped the plant would run at 100% capacity by year-end.
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