KUALA LUMPUR, Aug 13 (Bernama) -- Refined, bleached and deodorised (RBD) palm olein product supplier Sik Cheong Bhd made its debut on the ACE Market of Bursa Malaysia at 50 sen, representing an 85.2 per cent premium over its initial public offering price of 27 sen.
At 9 am, the counter saw 8.2 million shares changing hands.
Managing director Wong Hing Ngiap said the company has raised a total of RM17.8 million from the IPO.
Of this amount, a sum of RM7.2 million or 40.3 per cent is earmarked for the expansion of packaging facility, including the rebuilding of a factory as well as for the purchase of new machinery and equipment.
Additionally, RM0.9 million (5.0 per cent) is directed for the purchase of new delivery trucks.
The group also allocated RM6.0 million (33.4 per cent) for working capital, with the remaining RM3.8 million (21.3 per cent) to cover listing expenses.
“With the fresh capital raised, we are now poised to embark on our next phase of expansion," he said at a press conference following the company’s listing ceremony.
When asked if the recent ringgit hike has impacted the company's ability to mitigate raw material costs, Wong said it has not affected the company’s operating costs, likely because the increase is still recent.
Meanwhile, regarding the expected easing of crude palm oil (CPO) prices in the third quarter and how high operating costs might impact the group's bottom line and profit margins going forward, he said the key strategy is managing the turnover rate.
“We maintain a very short turnover rate. Costs are quickly offset by sales to customers, which helps us manage the volatility in CPO prices.
“Additionally, if costs increase, we can pass these increases on to customers by frequently revising our selling prices,” he said.
He added that the company’s current stock turnover rate is five to seven days.
Sik Cheong offers cooking oil brands such as Sawit Emas, Vitamas and lamp oil under the Pingat Emas brand among other products.
-- BERNAMA
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