First listing of 2019 DPI debuts with 38 pct premium

KUCHING: New entrant to the ACE Market, DPI Holdings Berhad (DPI) is looking to develop a new range of aerosol paint products to meet the requirements of different markets.

The new range of products could potentially include new colours, new chemical composition, or new products to meet unique purposes as per demand from different countries.

DPI debuted at RM0.345, which is a 9.5 sen or 38 per cent premium over the issue price of RM0.25 per share. The first trade was for 20.139 million shares.

DPI executive chairman and managing director Peter Chai said: “Going forward, we are looking towards increasing our range of products, with either the introduction of new colours or complementary products to aerosol paints. The new products will be geared towards entering new markets.

“We are doing this to accommodate the differing demands to keep up with requirements in each country. With this, we hope to position ourselves to capture this larger market potential.”

From the IPO proceeds, RM1.3 million is set aside for the development of new products.

Besides this, the group has recently acquired a new fully automated aerosol-filling machine to be used at the existing plant, which is part of the group’s plan to fully automate the existing three production lines.

On top of that, the group will construct a new factory with four new fully automated aerosolfilling lines, which will commence by the first half of 2020. The new factory and upgraded lines would double the annual production capacity to 20.0 million cans, from 9.7 million cans currently.

Alongside the higher capacity, the group will also boost advertising and marketing activities, with more below-the-line initiatives such as participating in more trade fairs, as well as raising online presence through enhancing the company website, and increasing internet marketing and advertisements.

Of the total IPO proceeds of RM31.6 million raised, the remaining RM23.5 million would be utilised for capital expenditure towards expansion of production capacity and RM3.0 million for extension of consumer reach through marketing and advertising activities.

Affin Hwang Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.

Chai (right) with DPI senior independent non-executive director Datuk Seri Nurmala Abdul Rahim (left) and deputy managing director Adam Chai look on at DPI’s stock performance after its listing yesterday.