PETALING JAYA: Kim Hin Joo (Malaysia) Bhd made a weak debut on the ACE Market of Bursa Malaysia today with a discount of 18.6% over its offer price of 43 sen.
The stock opened at 39 sen and hit a low of 35 sen before closing 18.6% lower at 35 sen, with 35.38 million shares traded, giving it a market capitalisation of RM133 million based on an enlarged capital share of 380 million.
Its chairman Pang Kim Hin said the listing exercise would strengthen the group’s corporate profile, enhance market awareness of its businesses, attract more investors and funding for future expansion.
With the listing, the baby, children and maternity products retailer raised RM32.68 million from the issuance of 76 million shares, of which it has earmarked RM20 million for business expansion and capital expenditure over the next three year.
Meanwhile, 27.2% of the proceeds amounting to RM8.88 million will be used for working capital and the balance of 11.6% totalling RM3.79 million to defray fees and expenses for the listing.
“A wider range of brands and products will increase our product portfolio and enable us to secure more customers, leading to a wider distribution network,” he said in a statement today.
Following the listing, Kim Hin Joo intends to open four to five new Mothercare outlets which might incorporate its Early Learning Centre (ELC) of which it is the exclusive franchisee within three years.
It is planning to open two outlets in Sunway Velocity Mall, Kuala Lumpur and Empire Subang Gallery, Selangor in the third quarter of this year, as well as a further two to three new outlets outside the Klang Valley between 2020 and 2021, depending on the commercial feasibility of such outlet openings.
“Our years-long relationship with Mothercare and ELC, which are globally recognised brands has provided us with a strategic advantage over our competitors who do not have the brand heritage and recognition and also contributed to our long-standing presence in the Malaysian retail market,” said Pang.
Kim Hin Joo will be expanding its toys range with the opening of The Entertainer toy outlets as well as revamping and upgrading its e-commerce platform.
With regard to the distribution operations, the group will secure more brands and products as well as promote the increase of sales of its existing brands.
