Leong Hup makes firm debut amid cautious market

From left to right: Lau Joo Heng, Country CEO - Philippines; Lau Joo Hwa, Country CEO

KUALA LUMPUR: Leong Hup International Bhd made a firm debut on Thursday, opening at RM1.12 which was two sen above its offer price of RM1.10 amid a cautious market.

At 9.05am, it was trading at RM1.15 with 69.10 million shares done.

The FBM KLCI was down 3.25 points or 0.2% to 1,608.18. Turnover was 138.03 million shares valued at RM106.01mil. There were 127 gainers, 81 losers and 145 counters unchanged.

 Speaking at the listing ceremony, its executive director / group CEO of Leong Hup International, Tan Sri Francis Lau Tuang Nguang said the listing “marks the realisation of months of hard work invested by our dedicated management team and diligent staff as well as the guidance and support of our team of advisers and the responsiveness and attention from the relevant authorities towards making this IPO a success”. 

Lau said Leong Hup as one of the largest fully integrated producers of poultry, egg and livestock feed in Southeast Asia, the listing of Leong Hup International “is one of the largest IPOs in recent history of Bursa Securities and the largest poultry related IPO in Southeast Asia”.

He said throughout the four decades of being in this business, the group has established a good reputation within our industry, built on the foundation of several key strengths. 

“We have emerged from our humble beginnings in Muar, Johor, we have transformed to become one of the largest fully integrated producers of poultry, egg and livestock feed in Southeast Asia, a feat that we are proud of,” he said.

He said about 71% of the group’s revenue from sales of goods was derived outside of Malaysia for FYE 31 December 2017.

The decision to list the company in Malaysia and the overwhelming demand for its IPO clearly validates its decision, he said.

For this IPO exercise, Maybank Investment Bank Berhad was the principal adviser, joint global coordinator, joint bookrunner, managing underwriter and joint underwriter. 

Credit Suisse Securities (Malaysia) Sdn Bhd and Credit Suisse (Singapore) Limited are joint global coordinators and joint bookrunners for the IPO, RHB Investment Bank Bhd is joint global coordinator, joint bookrunner and joint underwriter for the IPO. 

AmInvestment Bank Bhd and Hong Leong Investment Bank Bhd are joint bookrunners and joint underwriters for the IPO, and Kenanga Investment Bank Bhd IB is the joint underwriter for the IPO.