L&P debuts on ace market at 42 sen, a premium of 40 pct

Publish date: Tue, 03 Jan 2023, 12:09 PM

KUALA LUMPUR: L&P Global Bhd made a strong debut on the ACE Market of Bursa Malaysia Securities Bhd, opening at 42 sen, a 12 sen or 40 per cent premium from its initial public offering (IPO) price of 30 sen.

At the opening bell, the Penang-based integrated industrial packaging solutions provider saw 19.99 million of its shares traded.

Executive director and chief executive officer, Ooi Lay Pheng said the premium was within the company's expectations as it had received an overwhelming response for its IPO, which was oversubscribed by 36.14 times.

"Our listing today marks a significant milestone in L&P's 38 years of business history. More importantly, the newly-listed status and fresh funds raised will enable us to expedite our expansion plans and our next phase of growth.

"With our utilisation rate at approximately 90 per cent for the seven-month period ended July 31, 2022, we need to ready ourselves with additional capacity to take on new businesses," she told reporters after the listing ceremony here today.

She noted that many multinational companies (MNCs) are relocating and setting up new manufacturing facilities in Southeast Asia against the macro backdrop of the ongoing United States-China trade tension.

"This bodes well for us, as the increase in manufacturing activities will result in higher demand for industrial packaging products," said Ooi.

L&P is engaged in designing and manufacturing custom-made wooden pallets, boxes, crates and precision cases, and also provides packing services, circular supply services and trading of related products and raw materials.

According to Ooi, wooden industrial packaging is deemed more environmentally friendly compared to plastics and metal as wood is biodegradable, and the manufacturing process produces lower carbon emissions.

"Wooden industrial packaging products will continue to play a crucial role for businesses to transport goods throughout the supply chain as they are cost-effective and environmentally friendly.

"We will also be expanding our circular supply services where we collect, repair, recycle, repurpose and resell used industrial packaging products, thus extending the useful lifespan of the wood resource," she said.

  - Bernama

Labels: L&PBHD

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