OWG debuts at 4% premium

KUALA LUMPUR: Theme park developer Only World Group Holdings Bhd (OWG) closed at a premium of almost 4%, or 3.5 sen, over its issue price of 88 sen in its debut on the Main Market of Bursa Malaysia yesterday.
OWG is in leisure and hospitality services under its two main business segments, namely food service operations and amusement and recreation operations.
OWG's shares opened at its issue price of 88 sen, hit a low of 68 sen and high of 93.5 sen before ending its maiden day at 91.5 sen, with over 31.25 million shares traded.
Managing director and CEO Datuk Richard Koh Cheng Keong said the group expects to see higher single-digit revenue growth in its current financial year ending June 30, 2015 (FY15), driven by improved customer services and increased promotional activities.
"We are now actively developing our people especially in customer services training to increase the service level. We are looking to improve on that," Koh said at a press conference after the listing ceremony.
"We are stepping up measures on training so that the service level will improve and make more happy customers," he added.
Koh said the ongoing promotional activities with more than 10 festival events for its theme parks, which include Christmas events, fireworks and light shows, will increase the traffic at its theme parks.
"We believe all these will add towards our position as a market leader in the industry," said Koh.
The group currently operates 27 food service outlets, three water amusement parks and two family attractions.
Commenting on its financial performance for its next financial year ending June 30, 2016, the group expects to gain from the refurbishment of five specific levels within Komtar Tower in Penang, known as Top of Penang (TOP) project.
He said the entire project is expected to be completed by the third quarter of 2015.
"Once we launch the Komtar project, our revenue and net profit definitely will be higher," he said, adding that to date, 50% of the refurbishment work has been completed.
The group posted a net profit of RM3.04 million for the first quarter ended Sept 30, 2014 on revenue of RM19.22 million.
Of the RM49.64 million raised through its initial public offering, RM30 million will be used for the refurbishment of five levels within the Komtar Tower project, RM13 million to defray costs to be incurred for the setting up of its 10 new food service outlets and the expansion of the Wet World Water Park Shah Alam, RM2 million for working capital and the balance for listing expenses.