KUALA LUMPUR: Sarawak-based Supreme Consolidated Resources Bhd (SCRB) jumps as much as 66 per cent, from its initial public offering (IPO) price of 25 sen, on its debut on the ACE Market of Bursa Malaysia.
The share price opened at 37 sen, a 48 per cent premium to its IPO price, before hitting a high of 41.5 sen.
At 3.28pm, the stock was trading at 32 sen, giving it a market capitalisation of RM137.6 million.
Some 100 million shares changed hands, making it one of the most actively traded stocks.
SCRB non-independent executive chairman Datuk Richard Wee Liang Chiat in a statement said that with 40 years of industry experience, the company will continue the efforts to expand its product range to cater to consumers' ever-changing needs.
"Other than that, we intend to expand the distribution network and strengthen its distribution reach in Sarawak and Sabah, besides to expand warehouse capacity to meet SCRB's growing needs.
"We are excited for what lies ahead, and SCRB is confident in our proven ability to consistently build a solid foundation that supports our continued growth," he added.
With a total of RM17.5 million in gross proceeds raised from the IPO, SCRB will utilise 62.86 per cent (RM11 million) of the proceeds to finance warehouse facility expansion, while 22.86 per cent (RM4 million) for working capital.
The remaining proceeds will be utilised to defray listing-related expenses.
SCRB provides market access and coverage for consumer products in Sarawak and Sabah, where it is principally involved in the distribution of third-party brands as well as its own brands of frozen and chilled food products, ambient food and beverages (F&B) products, as well as non-F&B products.
Presently, the company has a total of two distribution centers equipped with warehousing facilities and cold storage facilities in Sarawak, located in Kuching and Miri to cater to the storage as well as distribution of various types of consumer products.
Kenanga Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.