KUALA LUMPUR: Shares in NWE Resources Group Bhd jumped 12.5% above their offer price as it commenced trading on the ACE Market of Bursa Malaysia.
The provider of hospitality amenities, personal care products and health foods opened at 22.5 sen, a 2.5 sen premium above its 20 sen initial public offering (IPO) price.
As at 9.30am, the share was changing hands at 20 sen apiece.
NWE Resources raised gross proceeds of RM28.6mil from its public issue, the bulk of which are allocated to expanding its product range and market reach.
The expansion initiatives include introducing new health food and personal care formulations, and expanding research and development and in-house manufacturing capabilities.
The company is also setting up a new sales office in Johor to capture a bigger share in the southern region, and setting up in-house live e-commerce and social media team to enhance its online presence and reach out directly to end consumers.
For the first quarter of its 2027 financial year, the group posted a net profit of RM2.8mil, representing an earnings per share of 0.52 sen, on revenue of RM10.59mil.
According to NWE Resources, the distribution of personal care products and health foods segment was its largest revenue contributor, accounting for RM4.25mil or 40.16% of total revenue.
This was followed by the repackaging, manufacturing and supply of personal care and related products segment at RM4.05mil or 38.23%, while the formulation and supply of health foods segment made up the remaining RM2.29mil or 21.61% of total revenue.
