Leong Hup most active on debut
KUALA LUMPUR: Poultry firm Leong Hup International Bhd’s shares rose as high as eight per cent to RM1.19 on the first day of its re-listing on Bursa Malaysia.
Leong Hup’s initial public offering was priced at RM1.10.
The stock was Bursa’s most active with 215.4 million shares traded, although it ended the day unchanged at RM1.10.
“It is very good, considering the current market’s sentiment,” said executive director and group chief executive officer Tan Sri Lau Tuang Nguang after the relisting ceremony, here, yesterday.
The FTSE Bursa Malaysia KLCI (FBM KLCI) fell 12.24 points to 1,599.19 yesterday.
“When Leong Hup was first listed, we were only operating in Malaysia. Since taking the company private in 2012, we have expanded our poultry and egg farming operations to five Asean countries,” he said.
Leong Hup is one of the major suppliers of broiler chicken in Malaysia, with an estimated 10 per cent market share.
The company raised RM275 million from the public issue of 250 million new shares, mainly to support its business expansion plans.
“We will build 32 broiler farms across Malaysia, which we expect to complete by the fourth quarter of next year.
“There are also plans to expand our feed mill and livestock farms in Vietnam, Indonesia and the Philippines,” he said.
Leong Hup controls two listed companies, namely egg producer Teo Seng Capital Bhd and Indonesia’s integrated poultry player PT Malindo Feedmil Tbk.
Lau said Leong Hup’s dividend policy entailed giving out 30 per cent of net profits to shareholders.
He thanked the 10 cornerstone investors who had placed their faith in Leong Hup’s growth prospects in Asean.
The 10 are the Employees Provident Fund Board, Maybank Asset Management Sdn Bhd, AIA Bhd, Louis Dreyfus Company Asia Pte Ltd, Tan Sri Chua Ma Yu, Ovata Capital Management Ltd, RHB Asset Management Sdn Bhd, Factorial Master Fund, Hong Leong Capital Bhd and Guoline (Singapore) Pte Ltd.