Semico Capital Achieves 80 Pct Premium Over IPO Price, Raises RM23.2 Mln

KUALA LUMPUR, Jan 13 (Bernama) --  Semico Capital Bhd made a strong debut on the ACE Market of Bursa Malaysia today as it opened at 45 sen, achieving a premium of 80 per cent over its initial public offering (IPO) price of 25 sen per share.

A total of 23.47 million shares were traded at the opening, raising RM23.2 million for the supplier of arcade machines and distributor of toys and collectables.

Its IPO saw an oversubscription rate of 28.1 times, reflecting strong investor confidence in Semico’s business operations and prospects, the company said in a statement today.

Executive director and chief executive officer Tai Lee Chuen said the family entertainment industry continues to benefit from evolving consumer lifestyles and a growing emphasis on shared leisure experiences.

“In line with this, we plan to expand our arcade and amusement machine fleet, with proceeds earmarked for the acquisition of 188 new machines and replacement of 55 machines, complementing the existing base of 650 machines nationwide.

“We will also further broaden our toys and collectables portfolio by introducing new merchandise, featuring popular intellectual property designs and characters, thus strengthening our customer engagement and ensuring Semico continues to deliver relevant and in-demand products within a growing market,” he said.

Semico is allocating RM8.5 million of the IPO proceeds for business expansion through new arcade and amusement machines, RM2.1 million to replace existing machines, RM2.5 million for toys and collectables, RM1.6 million to repay bank borrowings, and RM4.0 million for working capital.

Meanwhile, the remaining RM4.5 million will be used to defray listing expenses, it said.

Affin Hwang Investment Bank Bhd is the principal adviser, sponsor, sole placement agent and sole underwriter for this IPO exercise.

At 11.05 am, Semico, one of the top active counters, increased 22 sen to 47 sen, with 93.42 million shares transacted.

At 5 pm, the counter closed 12.5 sen or 50 per cent higher than the IPO price at 37.5 sen, with 132 million shares changing hands.

-- BERNAMA