KUALA LUMPUR: Johor-based building materials distributor BMS Holdings Bhd opened below its initial public offering (IPO) price of 22 sen per share, debuting on the ACE Market at 19.5 sen.
Chief marketing officer Ang Wei Liang acknowledged that the opening was softer than expected and that the listing did not attract strong trading interest at the outset.
“The opening price was lower than we expected, and perhaps we did not obtain the usual IPO hype and buzz, but going public is a long journey, and this is only the beginning,” he said at a virtual press conference held in conjunction with the listing yesterday.
Ang said the group will continue to focus on what it can control, namely executing its strategic plan to expand its retail footprint in Malaysia.
“What matters is the strong fundamentals of BMS, which include a stable retail-oriented business backed by solid tangible assets, healthy cash flow and profit-making operations.
“We remain optimistic about demand in the renovation and home finishing market, and our priority is to create sustainable value for our investors and partners,” he said.
Ang highlighted that the group plans to open eight new showrooms, with two to three expected to be operational and contribute to revenue in the financial year ending 2026 (FY2026), while the remainder would contribute in FY2027 and onwards.
When asked if opening more showrooms could lead to operational disruption, he said the company does not expect any issues unless there is an external shock, such as Covid-19 or a movement control order.
“Opening more showrooms does not stretch the management team, as it mainly involves adding sales personnel and physical resources for each outlet, and from a management perspective it is not a major challenge,” he said.
The group has set aside about 43 per cent of the IPO proceeds to expand its sales and logistics footprint, including setting up outlets in Seremban, Selangor, and Kuala Lumpur, as well as a distribution hub in the Klang Valley.
Alliance Islamic Bank is the principal adviser, sponsor, sole underwriter and placement agent for the IPO. – BERNAMA
