HLT Global debuts on Ace Market, closes at a 21% premium

KUALA LUMPUR: Glove-dipping lines manufacturer HLT Global Bhd closed at a premium of 21.11%, or 9.5 sen, over its issue price of 45 sen in its debut on the Ace Market of Bursa Malaysia yesterday.
HLT began its operations in 2009, producing glove dipping lines that cater for the manufacturing of natural and synthetic rubber gloves. Its clients include local rubber glove manufacturers, including manufacturers from Indonesia, Thailand and China.
HLT Global’s shares opened at 55 sen, hit a low of 54.5 sen and a high of 57.5 sen before ending its maiden day trading at 54.5 sen, with some 33.04 million shares traded.
The IPO entailed a public issue of 39.59 million new ordinary shares and an offer for sale of 34.3 million shares.
Speaking at a press conference after its listing ceremony yesterday, HLT Global executive director and CEO Chan Yoke Chun said she was very confident of the group’s outlook for this year, driven by its future plans in hand.
“I am very confident that we will continue to grow and have a higher market share from what we have presently,” she added, without revealing its targeted market share. The company controls 26.6% of the industry’s revenue share in 2015.
The group raised RM17.8 million through its listing for use in capital expenditure (capex), research and development (R&D) expenditure, working capital and listing expenses.
Its capex includes the proposed acquisition of land and construction of a factory within the southern part of Klang Valley as well as the establishment of R&D facilities.
Based on its third quarter financial report ended Sept 30, 2016, the local market contributed 74.61% of the group’s total revenue.
For the nine-month period ended Sept 30, 2016, the group made a net profit of RM7.64 million on revenue of RM60.65 million.
More than 90% of its revenue was derived from its sale of new lines business, which involves the design, fabrication, installation, testing and commissioning of glove-dipping lines.