Kim Hin Joo makes cautious debut on ACE Market

Kim Hin Joo operates 17 Mothercare outlets and 11 Early Learning Centre brand store-in-store outlets in Malaysia.

KUALA LUMPUR: Baby, children and maternity product retailer Kim Hin Joo (Malaysia) Bhd made a cautious debut on the ACE Market on Monday, opening at 39 sen, or four sen below its offer price of 43 sen a share.

At 9.04am, it was trading at 37 sen, down six sen with 6.12 million shares done.

The FBM KLCI was down 3.96 points or 0.24% to 1,678.57. Turnover was 99.85 million shares valued at RM33.38mil. There were 108 gainers, 98 losers and 183 counters unchanged.

Kim Hin Joo operates 17 Mothercare outlets and 11 Early Learning Centre brand store-in-store outlets in Malaysia. The outlets offer 184 brands of clothing, home and travel-related products as well as toys.

The retail segment represents 82% of the company’s total revenue for the financial year of 2018 (FY18), with a gross profit margin of 55%.

The distribution segment, on the other hand, has 635 distribution points of which 624 are located in Malaysia.

Kim Hin Joo raised RM32.68mil from the issue of 76 million new shares at an issue price of 43 sen a share. The new shares comprise 20% of the group’s enlarged issued capital.

Of the 76 million new shares, the company set aside 19 million shares for the Malaysian public, 10 million to eligible persons and 47 million to selected investors. The shareholders offered 57 million existing shares to be placed out.

Upon listing, the group would have a market capitalisation of RM163.4mil, with a price-to-earnings ratio of 14.72 times. The stock is also syariah-compliant.

Over the next three years, about 61% of its listing proceeds amounting to RM20mil will be spent on business expansion and capital expenditure.

The remaining cash from the initial public offering, or RM12.68mil, is for working capital and listing expenses.