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Leong Hup makes firm debut amid cautious market

TheStar Thu, May 16, 2019 - 5 days ago


Leong Hup is the biggest initial public offering (IPO) on the Main Market of Bursa Malaysia this year.

Leong Hup is the biggest initial public offering (IPO) on the Main Market of Bursa Malaysia this year.

KUALA LUMPUR: Leong Hup International Bhd made a firm debut on Thursday, opening at RM1.12 which was two sen above its offer price of RM1.10 amid a cautious market.

At 9.05am, it was trading at RM1.15 with 69.10 million shares done.

The FBM KLCI was down 3.25 points or 0.2% to 1,608.18. Turnover was 138.03 million shares valued at RM106.01mil. There were 127 gainers, 81 losers and 145 counters unchanged.

Leong Hup is the biggest initial public offering (IPO) on the Main Market of Bursa Malaysia this year. Its IPO, valued at RM1.2bil, will be the largest IPO since Lotte Chemical Titan Holding Bhd.
 
The company is one of the largest integrated poultry, egg and livestock feed producers in South-East Asia, with businesses in five countries in the region. 

It is one of the major suppliers of broiler chicken in Malaysia with an estimated 10% market share.

Of the IPO of RM1.2bil, the total amount to be raised for the company is RM275mil. About RM207.7mil, or 75%, will be set aside for business expansion.

For its first-quarter earnings to end March, Leong Hup’s net profit rose 15% to RM60.58mil compared with RM52.68mil achieved a year ago, on higher sales volume and an increase in the selling price of eggs in Malaysia and broiler chicks in Indonesia.

Revenue rose around 11.2% to RM1.51bil from RM1.35bil previously.

TA Securities has a target price of RM1.43 on the stock while Interpac Securities and JF Apex Securities both target RM1.27 and RM1.43, respectively.
 
   
The FBM KLCI was down 3.25 points or 0.2% to 1,608.18. Turnover was 138.03 million shares valued at RM106.01mil. There were 127 gainers, 81 losers and 145 counters unchanged.

Leong Hup is the biggest initial public offering (IPO) on the Main Market of Bursa Malaysia this year. Its IPO, valued at RM1.2bil, will be the largest IPO since Lotte Chemical Titan Holding Bhd.
 
The company is one of the largest integrated poultry, egg and livestock feed producers in South-East Asia, with businesses in five countries in the region. 

It is one of the major suppliers of broiler chicken in Malaysia with an estimated 10% market share.

Of the IPO of RM1.2bil, the total amount to be raised for the company is RM275mil. About RM207.7mil, or 75%, will be set aside for business expansion.

For its first-quarter earnings to end March, Leong Hup’s net profit rose 15% to RM60.58mil compared with RM52.68mil achieved a year ago, on higher sales volume and an increase in the selling price of eggs in Malaysia and broiler chicks in Indonesia.

Revenue rose around 11.2% to RM1.51bil from RM1.35bil previously.

TA Securities has a target price of RM1.43 on the stock while Interpac Securities and JF Apex Securities both target RM1.27 and RM1.43, respectively.
 








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