KUALA LUMPUR, May 16 — Leong Hup International Bhd made its debut on the Main Market of Bursa Malaysia Securities at a two sen premium over its initial public offering (IPO) price of RM1.10 with 20.88 million shares traded.
It was one of the largest IPO’s since 2017 and in 10 minutes of trade, Leong Hup’s shares rose by another five sen.
The company, one of the largest integrated producers of poultry, egg and livestock feed in Southeast Asia, is expected to raise RM275 million through the listing.
Executive director/group chief executive officer Tan Sri Lau Tuang Nguang said about RM207.7 million or 75 per cent of the proceeds would be utilised for the company’s capital expenditure.
“It will facilitate the expansion of operations in Malaysia, Vietnam and the Philippines.
“A further 12 per cent of the proceeds will be used for working capital and the balance of 12.5 per cent be used to defray fees and expenses for our IPO and listing,” he told a press conference after the company’s listing today.
For its first quarter ended March 31, 2019, Leong Hup recorded an increase in revenue by 11.9 per cent at RM1.51 billion, compared to RM1.35 billion recorded in the same quarter last year, while net profit rose to RM60.59 million from RM52.69 million in the same period.
Leong Hup owns livestock feed mills and poultry businesses in five countries in the region and is one of the major suppliers of broiler chicken in Malaysia with an estimated 10 per cent market share. ― Bernama
