KUALA LUMPUR: Car leather upholstery maker Pecca Group Bhd made a firm debut on the Main Market of Bursa Malaysia on Tuesday, opening at RM1.71, or 29 sen above its initial public offer (IPO) of RM1.42.
At 9.10am, it was trading at RM1.65, up 23 sen. There were 21 million shares done at prices ranging from RM1.65 to RM1.74.
The FBM KLCI fell 3.79 points or 0.22% to 1,713.89. Turnover was 98.24 million shares valued at RM70.94mil. There were 142 gainers, 78 losers and 159 counters unchanged.
Its shares for the Malaysian public were oversubscribed by 13.11 times. There were 8,047 applications for 132.637 million shares were received for the 9.4 million shares available for public subscription at RM1.42 per share.
It also undertook a private placement of 53.526 million shares to selected investors.
Out of the RM67.87mil to be raised from the issuance of new shares of 47.79 million, it would use RM26.97mil or 39.74% of the the proceeds for working capital.
Another RM17.1mil would be used to repay bank borrowings, and RM7.55mil for the purchase of new machinery to produce car leather seat covers while RM5mil would be used to expand its production area with RM5mil used for listing expenses.
The enlarged issued and paid-up of PECCA after the listing would increase from 140.2 million shares to 188 million shares following the issuance of 47.79 million new shares
PECCA plans to increase production capacity by an additional 50,000 sets of car seat covers to 170,000 annually.
PECCA (5271) - Pecca makes firm debut amid cautious market
http://www.thestar.com.my/business/business-news/2016/04/19/pecca-makes-firm-debut-amid-cautious-market/
