Health supplement producer OB Holdings Bhd saw its IPO stock surged up to 8% on the first day of ACE market listing on Bursa Malaysia, according to exchange and local media sources.

The first shares traded at 25 sen per share in early morning, which is one sen above the listing price of 24 sen, marking a 4.2% premium over the IPO price.

The stock price at one point even rose to 26 sen per share, which represented a two sen, or 8.3%, increment to its listing price.

As at 3:05pm Oct 29, OB Holdings stock traded at RM0.245, up half of a sen from its listing price of RM0.24.

Earlier, OB Holdings' IPO was oversubscribed by 109.47 times.

The proceeds from the IPO listing will be used to settle bank loans secured for its Serendah factory plant in Selangor.

The company noted that the Ace listing is an important milestone that acknowledges the contribution of OB Holdings in the past 29 years.

The company revealed that with the completion of its factory construction, OB Holdings will be able to increase its production exponentially each year.

The factory occupies a land lot of 210,420 square feet. The construction commenced in January this year, and is expected to conclude in the first half of 2025, and assume commercial production in the first half of 2026.