Wednesday, 13 July 2011
Old Town shares surged
Old Town, Ltd., a manufacturer of beverage products immediately and the operator Old Town White Coffee cafe chain to be listed on the Main Market of Bursa Malaysia yesterday, surged to 12 per cent or 15 sen to RM1.40 per share as compared to the reference price of RM1. 25 per unit.
Its share price opened at RM1.38 per share, up 13 cents before surging to the highest level of daily RM1.40 per share shortly after that.
But profit -taking emerging after the price of these counters closed at RM1.32 per unit, up 5.6 percent, or seven cents compared to the reference price. On the whole the average market price during trading yesterday Old Town is RM1.34 per share for 51.75 million shares traded, valued at RM69 .41 million. Its chairman, Datuk Dr Ahmed Tasir Lope Pihie, said he is satisfied with the performance of the group's share price recorded a premium even in a global market environment of uncertainty. "It proves we have a strong local brand," he said after the listing in Kuala Lumpur yesterday. He said the group now intends to further expand its operations by leveraging its brand, extensive distribution network and business model as an integrated producer of coffee. "Concurrent with the listing, we opened three new premises, respectively, on the River Buloh, Selangor and Jalan Pahang, Kuala Lumpur and Miri, Sarawak. "We will open two more cafés of the I-City and Bandar Sri Queen in the Klang Valley by the end of this month," he said. Ahmed said the company plans to open 300 cafes within three years compared to the existing 182 in Malaysia, Indonesia and Singapore. kopitiam network operators and beverage manufacturers to collect the mixture immediately through the implementation of RM79.2 million initial public offering in conjunction with the listing. Of the total, RM38.1 million will be channeled for capital expenditure, including finance new factories, opening 27 new cafes and purchase equipment. Meanwhile, RM19.7 million will be used to take over the company; RM10.5 million for working capital; RM5.9 million to repay the loan and RM5 million for listing expenses. IPO involves 63.4 million new ordinary shares and offering to sell 33 million vendor shares.