August 13, 2024 - $SCB (0316.MY)$ Sik Cheong Bhd, an edible oil distributor, saw a remarkable surge of 37% on its first day of listing on Tuesday, reaching a stock price of RM0.37.

The company's Initial Public Offering (IPO) raised a total of RM23.22 million , with RM17.8 million coming from the public portion of the offering. The remaining amount was secured through private placements to selected investors. The public tranche of the IPO was oversubscribed by an impressive 213.53 times. The new shares reserved for eligible persons and selected investors were fully subscribed. Additionally, the offer for sale of existing shares was also completely taken up.

Sik Cheong, a Malaysian company specialized in the repackaging, marketing, and distribution of RBD palm olein oil products under the brands "Sawit Emas," "Vitamas," and "Pingat Emas." With a strong presence in the Malaysian market, Sik Cheong serves a wide customer base including retailers, wholesalers, and food manufacturers. The company operates primarily in Kuala Lumpur and Selangor, generating the majority of its revenue from these regions.

From its IPO, Sik Cheong raised RM17.8 million, allocating 40.3% to packaging facility expansion, 5.0% to purchasing delivery trucks, 33.4% to working capital, and 21.3% to cover listing expenses.

Source: Announcement