Polymer Link debuts at 15 sen for three sen premium

KUALA LUMPUR: Polymer Link Holdings Bhd made its debut at 15 sen per share on the Entrepreneur Accelerator Platform (LEAP) Market of Bursa Malaysia, for a premium of three sen above its issue price of 12 sen a share.

The compounded and noncompounded plastic powder manufacturer and trader, the fourth company to be listed on the LEAP Market this year, saw 50,000 shares changing hands at the opening bell.

According to the company’s Information Memorandum released on April 10, Polymer Link aimed to raise RM5.55 million through its LEAP listing, whereby 51.4 per cent (RM2.86 million) would be used for general working capital.

“Twenty seven per cent or RM1.5 million would be utilised for payment of shareholders’ advances, while the remaining 21.6 per cent or RM1.2 million will be used for listing expenses,” it added.

Polymer Link Managing Director and chief executive officer Eddie Koh Song Heng said the premium recorded showed that investors were confident of the company’s strong footing in the industry.

Following the listing exercise, Koh said that the company planned set up a new warehouse in the United States (US).

“There is a huge untapped opportunity in the US, as we understand that the plastic powder they are using is similar to what we are producing.

“Currently, negotiations are still underway, but we believe the plan is on track now,” he said.

Koh said the company also planned to open more plants in the Asean region, but declined to disclose any further details.

According to the Information Memorandum, the company plans to set up a warehouse facility in Winsconsin, the US in the quest to enter the huge market and secure new customers in the world’s largest economy, and make forays into Canada.

Currently, Polymer Link has a factory in Klang and another one in the Philippines.

The Information Memorandum shows that the company recorded RM41 million in revenue for the financial year ended September 30, 2017 (FY17), up from RM35.4 million in the previous year.

It said 90.6 per cent of its revenue in FY17 came from the Philippines, 6.8 per cent from Malaysia and the remaining from other countries, including Vietnam and Australia.

Moving forward, the company is also eyeing to secure new customers in Asia-Pacific countries such as China, India and New Zealand. — Bernama