KUALA LUMPUR: Hock Soon Capital Bhd made a subdued debut on Bursa Malaysia’s Main Market, opening at 53 sen, 7 sen below its initial public offering (IPO) price of 60 sen, amid weaker-than-expected investor demand.
Ahead of the listing, the Perak-based poultry producer’s IPO shares were oversubscribed by just 0.36 times.
Executive director Alex Ong said the company remains focused on its long-term expansion plans despite the softer opening.
"The opening price may be lower than our IPO price, but from our perspective, we should focus on the expansion plan. I believe we have strong fundamentals and a good growth trajectory,” he said at a press conference held in conjunction with the listing.
Ong said the group’s immediate priority is the development of its Teluk Intan expansion project, which is expected to strengthen production capacity progressively.
"The strengthening ringgit would also help to ease feed costs, as we source most of our feed materials from overseas,” he said, adding that these are typically imported from Argentina, Brazil and Ukraine.
On the removal of government subsidies for egg producers, Ong noted that the support was initially introduced during the pandemic to cushion the impact of price controls amid shortages.
"Even without the subsidy, we believe we can maintain good earnings and remain resilient, as eggs are a staple food with consistent demand,” he said.
Ong also outlined plans to expand into Singapore, with the audit completed in July last year. The company is awaiting a response from the Singapore Food Agency, expected by the first quarter.
"In the initial stage, our target is to achieve at least a five per cent revenue contribution from exports to Singapore,” he said.
On operational efficiency, Ong said the group intends to replicate the modern farming methods used at its existing facilities for the Teluk Intan project, while remaining open to adopting new technologies where appropriate.- Bernama
