Malaysia’s LY Corporation Limited debuted on the Catalist board of the Singapore Exchange (SGX) – the first listing of the year on the city-state’s bourse – after an initial public offering (IPO) that saw the issue of 75,848,000 placement shares priced at S$0.26 per share, according to a release from the stock exchange.
It debuted at 28.5 cents, a 9.6 per cent gain from its issue price of 26 cents. At market close, its shares were trading at 31 cents. The company saw strong investor demand, with valid applications for all placement shares and raising gross proceeds amounting to S$19.7 million ($15.05 million).
LY Corporation’s total issued share capital stands now at S$23 million ($17.5 million), comprising 489.1 million shares, with a market capitalisation estimated at S$127.2 million ($97.1 million) based on S$0.26 per placement share.
Heah Theare Haw, a substantial shareholder in mainboard-listed Geo Energy Resources, and Pheim Asset Management are among the firm’s IPO investors.
Founded in the Malaysian state of Johor in 1976, LY Corporation is a manufacturer and exporter of wooden bedroom furniture. As at 15 December 2017, it operates 15 factories and warehouses, occupying a combined built-up area of approximately 1.4 million sq ft.
The public float will see the company explore investments, mergers and acquisitions, as well as joint ventures (JVs). Of the net proceeds of approximately S$13 million, S$1 million will be used to finance the expansion of its sales network in mainland China, S$5 million for the upgrading of machinery and equipment and acquiring new technology; S$4 million for the construction of additional facilities; and S$3 million for general working capital purposes.
Its products are sold mainly to overseas dealers, such as furniture wholesalers and retailers who generally resell the products to end-users through their respective retail networks. It also seels to domestic customers within Malaysia who are primarily third-party agents that typically export and resell its products outside Malaysia to markets such as the US.
“We are encouraged by the strong investors’ interest in the IPO, which reflects confidence in LY Corporation’s track record and growth prospects. We believe that a listing on the Catalist board of the Singapore Exchange will provide us with the access to the international capital market that will offer us significant impetus to pursue our next phase of growth,” said Tan Yong Chuan, LY Corporation Executive Director and CEO.
The listing of LY Corporation brings the total number of consumer companies on the SGX to 151, Catalist-listed firms to 201 and an aggregate market capitalisation of consumer enterprises close to S$150 billion. The Catalist listing also brings the aggregate market capitalisation of firms on the growth board to more than S$12.5 billion.
Mohamed Nasser Ismail, Head of Equity Capital Market (SME) and Head of Capital Market Development at SGX, said, “We are pleased to welcome LY Corporation Limited to Catalist. As the company looks to expand their sales network in the PRC as well as upgrade and expand their facilities, we look forward to supporting them in their growth ambitions.”