Pappajack debuts 30% above IPO price at 39c

(L to R) Cheong Woon Yaw, Pappajack independent non-executive director; Sylvia Koo Woon Kan, independent non-executive director; Law Book Ching, executive director; Lim Boon Hua, managing director and CEO; Chong Chee Fire, independent non-executive chairman; Datuk Magaret Ting Thien Hung, independent non-executive director, at the company's listing ceremony

KUALA LUMPUR: Licensed pawnbroker Pappajack Bhd opened for trade today at 39 sen a share, a nine sen or 30% premium over its issue price of 30 sen a share.

Announcing its debut on the ACE Market of Bursa Malaysia, Pappajack managing director and CEO Lim Boon Jua said the company was entering a new phase of growth as the listing affirms its leading position in the pawnbroking industry.

“We have come a long way since we opened our first pawnbroking outlet in Klang, Selangor, and today we are proud to be the first licensed pawnbroking group of companies to be listed on the ACE Market of Bursa Malaysia.

"We have been working diligently since 2014 to grow our business and finally, we are seeing the fruits of our hard work," said Lim in a statement.

Pappajack had previously announced that it intends to utilise the proceeds of RM50.1mil from the initial public offering (IPO) for cash capital and funding the expansion of its outlets.

In addition, the company will acquire third-party pawnbroking outlets in Peninsular Malaysia to further its expansion.

"Pawnbroking has been around for centuries as an essential service for people in need of immediate funds through pawning their valuables as security to get a cash advance in which they are charged interest.

"Today, pawnbrokers in Malaysia are classified as non-bank financial institutions, pawnbroking complements the financial ecosystem by providing short-term micro-loans to customers who are financially unserved or underserved by conventional financial institutions," said Lim.

He added that pawnbrokers continue to play a vital role by supporting people who seek immediate funds to support their temporary financial needs in a manner that is convenient, quick and flexible.

In tandem with the stock's debut, Pappajack announced the opening of two new pawnbroking outlets in Selangor and Pahang, comprising two of the five planned new outlets.

Including the recently launched outlets, Pappajack has a total of 27 pawnbroking outlets in operation.