KUALA LUMPUR: Total surface decorative products company, Topmix Bhd, jumped as much as 46.8 per cent on its debut on ACE market of Bursa Malaysia Securities Bhd.
As at 11.17am, Topmix was trading almost 42 per cent higher at 44 sen, 13 sen more than its IPO price. It was the third most actively traded stock with 89.3 million shares changing hands.
Its managing director Teo Quek Siang in a statement today said the fresh capital raised through the initial public offering (IPO) positions it strongly to execute its expansion plans.
"Our immediate focus includes broadening our product range by expanding into the assembly of melamine faced chipboard (MFC) products, catering to new customer segments like furniture manufacturers. MFC provides a cost-effective option for furniture carcasses, while complementing our existing HPL surface decorative products. This allows us to offer customers complete, colour-coordinated products at competitive prices," he said.
Topmix will also establish a sales office in Pulau Pinang to capture business opportunities in the northern region of Peninsular Malaysia to meet rising demand from customers, increase brand and product awareness, and respond more promptly to product orders across the region.
The group raised a total of RM25.6 million from the IPO.
Of this amount, RM11.3 million (44.2 per cent) is directed towards general working capital, while RM6.0 million (23.3 per cent) will facilitate business expansion, marketing and sales initiatives, including the establishment of a new sales office and warehouse expansion.
Topmix has also allocated RM5.3 million (20.8 per cent) for the expansion into MFC products assembly. The remaining RM3.0 million (11.7 per cent) is set aside to cover listing expenses.