KUALA LUMPUR: Condom maker Karex Bhd made a strong debut on the Main Market of Bursa Malaysia on Wednesday, opening at RM2.34, which was 49 sen above IPO price of RM1.85.
At 9.08am, it was up 52 sen to RM2.37. There were 13.24 million shares done.
The FBM KLCI rose 2.17 points to 1,809.64. Turnover was 174.32 million shares valued at RM113.30mil. There were 162 gainers, 91 losers and 166 counters unchanged.
At an offer price of RM1.85 each, its initial public offering (IPO) was oversubscribed by a massive 22.76 times. Karex currently supplies 10% of the total condoms sold worldwide.
Karex CEO Goh Miah Kiat said: “We are very happy to open at such a good price. I am actually overwhelmed with the interest especially that shows the investing community is confident in Karex.
“We see that very positively. We would like to move into our next phase as a listed company going forward,” he said.
RHB Research Institute has a target price of RM2.59 for Karex based on 16 times calendar year 2014 price-earnings.
A cheaper ringgit and weaker latex prices will benefit the exporter.
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