PETALING JAYA: DPI Holdings Bhd made a bullish debut on the ACE Market of Bursa Malaysia today, opening at 34.5 sen, a premium of 9.5 sen or 38% over its offer price of 25 sen, and subsequently rose as much as 40% or 10 sen to 35 sen at one stage.
The stock’s gains, however, were pared in the afternoon session. DPI’s share price closed at 27 sen for a premium of 2 sen or 8%, giving the company a maket capitalisation of RM131.42 million. It was the most actively traded stock today with 128.49 million shares changing hands.
DPI’s initial public offering (IPO) raised RM31.6 million, which will be used to double the capacity of its aerosol can production. The group is looking to develop a new range of aerosol paint products fordifferent markets.
“Going forward, we are looking towards increasing our range of products, with either the introduction of new colours or complementary products to aerosol paints. The new products will be geared towards entering new markets.
“We are doing this to accommodate the differing demands to keep up with requirements in each country. With this, we hope to position ourselves to capture this larger market potential,” said DPI executive chairman and managing director Peter Chai @ Choy Mui Seng.
Of the IPO proceeds, RM1.3 million is set aside for evelopment of new products.
The group recently acquired a new fully automated aerosol-filling machine for the existing plant, which is part of its plan to fully automate the existing three production lines. In addition, DPI will build a factory with four fully automated aerosol-filling lines, which will begin operations by the first half of 2020. The new factory and upgraded lines will double the annual production capacity to 20.0 million cans, from 9.7 million cans currently.
Source: The Sun Daily