HLT global debuts on Bursa Malaysia at 55 sen for 10 sen premium

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KUALA LUMPUR: HLT Global (HLT) Bhd made its debut on the Ace Market of Bursa Malaysia yesterday at 55 sen, a 10 sen premium above its issue price of 45 sen each.

The glove-dipping lines manufacturer, which had an oversubscription rate of 24.64 times during balloting, saw 5.37 million shares changing hands at the opening bell.

“We are very pleased with the premium opening price of 55 sen, a 22.2 per cent increase from our initial price of 45 sen.

“It indicates the confidence level towards the company and the global market” group executive director Chan Yoke Chun told a press conference after the listing ceremony.

She said via the listing exercise, HLT Global intends to leverage on the company’s strong track record in seeking market opportunities, while strengthening its presence regionally and globally.

HLT Global’s Initial Public Offering (IPO) exercise entailed a public issue of 39.591 million new ordinary shares and an offer for sale of 34.309 million shares at an issue/offer price of 45 sen per share.

Through the IPO exercise, it aims to raise RM17.8 million, of which RM9 million (51 per cent) will be used for capital expenditure, RM1.5 million (8.4 per cent) for research and development, RM4.9 million (27.6 per cent) for working capital, with the remaining RM2.4 million (13.5 per cent) for the estimated listing expenses.

The company currently has a presence in Thailand, Indonesia, India and Saudia Arabia.

Chan said the company’s main focus was now Malaysia, with future plans for expansion to Vietnam.

“We are currently seeking land in the southern part of the Klang Valley for the possible construction of a new factory.

“As for Vietnam, we plan to tap the market there.

“Our research indicates the country is a good place to invest with a lot of businesses and investors going there,” she added.

A recent report projected the glove-dipping line industry in Malaysia to grow at a compounded annual growth rate (CAGR) of 15.2 per cent from an estimated RM326.5 million in 2016 to RM575.9 million in 2020.

For its financial year 2015 (FY2015), HLT Global’s estimated industry revenue share stood at 26.6 per cent, based on its revenue contribution of RM75.7 million.

Currently, HLT Global has an outstanding order book of RM69 million which will keep the company busy until end-2017.

On the weakening of the ringgit, Chan said the company is not much affected with exports in the US dollar, while most raw materials are purchased locally and some from China, Denmark, and Singapore. — Bernama