KUALA LUMPUR: Kucingko Bhd, the first animation production company to be listed on the local stock exchange, made a remarkable debut on the ACE Market of Bursa Malaysia Securities on Friday.
The counter opened at 80.5 sen a share, a premium of 50.5 sen or more than 168% over its initial public offering price of 30 sen per share, on trading volume of 13.45 million shares. The impressive debut boosted the company’s market value by almost RM253 million, increasing its market capitalisation from the RM150 million implied by the IPO price.
The share closed at 57 sen, 27 sen or 90% higher than the IPO price, with 158.18 million units traded.
Kucingko executive director See Chin Joo said the outcome was unexpected with plenty of interest in the company as seen from the opening price.
He added that Kucingko raised RM30 million from its public issue with majority of the proceeds to be used for expansion, particularly in Sabah, Sarawak and Selangor.
See said 60% of the proceeds will be used on expansion in the country besides plans to set up a sales office in North America. “Kucingko foresees that 2025 will be a good year as the company will embark on more projects, besides staff strength expanding from 262 to 510 people, in three years.”
The company has earmarked RM17.77 million for capacity expansion, RM4.38 million for establishing a sales office in North America, RM4.26 million for working capital and RM3.6 million for listing expenses.
Additionally, the IPO included a private placement of 100 million existing shares to select investors, generating RM30 million, all of which went to a group of selling shareholders.
Kenanga Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for Kucingko’s IPO.
