BCM debuts on ACE market at eight sen premium

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Of the total proceeds, RM2.60 million will be used to set up a chain of 11 new Speed Queen self-service launderette outlets as concept stores nationwide, and RM7.70 million to purchase new commercial laundry equipment and medical devices.

Of the total proceeds, RM2.60 million will be used to set up a chain of 11 new Speed Queen self-service launderette outlets as concept stores nationwide, and RM7.70 million to purchase new commercial laundry equipment and medical devices.

KUALA LUMPUR: BCM Alliance Bhd made its debut on the ACE Market of Bursa Malaysia yesterday at 27 sen, which is an eight sen premium above its issue price of 19 sen.

The distributor of laundry equipment and medical devices, which had its public subscription shares oversubscribed by 49.94 times, saw 9.62 million shares changing hands at the opening bell.

“We are happy with the performance of our share price yesterday, as the premium of eight sen shows investors are confident in our company,” managing director, Liaw Chong Lin told a press conference after the listing ceremony.

The initial public offering (IPO) comprised 84.25 million new ordinary shares and an offer for sale of 42.13 million existing shares at an IPO price of 19 sen per share at five sen par value.

Of the total proceeds, RM2.60 million will be used to set up a chain of 11 new Speed Queen self-service launderette outlets as concept stores nationwide, and RM7.70 million to purchase new commercial laundry equipment and medical devices.

Another RM3.21 million is to fund the day-to-day working capital expenses of the group, and the remaining RM2.50 million to defray listing expenses. M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise.

Meanwhile, Liaw believes the company will perform better this year compared to 2015, on the back of several new projects and orders to be received.

On company revenue, he expects both the laundry equipment and medical devices segments to make a 50:50 contribution to total revenue this year. Last year, the laundry segment contributed 60 per cent of revenue.

In the 2017 Budget, the government announced a sum of RM25 billion to be channelled to the healthcare sector, including the building of new hospitals and clinics. Liaw believes the announcement will help boost the company’s business in both segments.

He also described the 2017 Budget as small and medium enterprises-centric and benefit companies like BCM.

Meanwhile, in a statement, BCM said it recorded a net profit of RM2.59 million for the second quarter ended June 30, 2016, up from RM1.96 million for the corresponding period last year.

For the same period, revenue rose to RM17.7 million from RM17.0 million in the same period last year.

It attributed the better performance to an increase in contribution from both the laundry equipment and medical devices business segments. — Bernama