A May 8 file pic shows Xin Hwa Holdings Bhd signing underwriting agreement with Public Investment Bank for its initial public offering exercise. From left: Xin Hwa independent non-executive chairman Datuk Seri Dr. Suleiman Mohamed; Xin Hwa Holdings MD Ng Aik Chuan; Public Investment chief executive officer Fong Loong Seng; and Public Investment Bank Bhd Deputy CEO Lee Yo-Hunn.
KUALA LUMPUR: Integrated logistics service provider Xin Hwa Holdings Bhd
made a firm debut on Bursa Malaysia at 79 sen, or nine sen above its offer price of 70 sen, on Tuesday amid the global rout of world equities sparked by the Greece debt crisis.
The counter closed at 86 sen, with 76.32 million shares traded at prices ranging from 75.5 sen to 90 sen.
The FBM KLCI was up 3.14 points or 0.19% to 1,695.06. Turnover was 32.47 million shares valued at RM13.28mil. However, the broader market was very cautious with 181 losers to 49 gainers and 108 counters unchanged.
The Johor-based company raised RM26.45mil from its listing on the Main Market of Bursa Malaysia Securities.
BIMB Securities Research has a Buy on XHH with a target price of 94 sen based on the regional weighted price-to-earnings of 10 times over FY15 EPS.
The initial public offer (IPO) comprised of 54 million shares at an issue price of 70 sen per share -- 37.78 million new shares and 16.22 million existing shares.
Based on the issue price of 70 sen per share and the enlarged issued and paid-up of 180 million shares, it would have a market capitalisation of RM126mil.
Of the RM26.45mil raised from the IPO, it would use RM11.35mil to expand its fleet and RM4.75 to build a new warehouse, RM3.75mil to repay borrowings, RM3.08mil as working capital and the remaining RM3.51 for estimated listing expenses.
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