Educations solutions provider Sasbadi Holdings Bhd debuted on the Main Market of Bursa Malaysia yesterday with an impressive premium of 56 sen upon opening bell, against an offer price of RM1.19 per share.
The shares opened for trading at RM1.75, with some 3.6 million shares changing hands at the opening bell. Analysts had an indicative fair value of RM1.30 for Sasbadi shares.
Just two minutes after opening (at 9.02am), the shares were trading at RM1.86, up 67 sen. There were 8.85 million shares traded at prices ranging from RM1.75 to RM1.89. The shares closed at RM1.50, with a total volume of 49.23 million.
Sasbadi MD Law King Hui said the company had anticipated such a reception to its shares, given the retail offer of the IPO was oversubscribed by 33.15 times.
“We are very happy with the opening price. Our plans on moving forward and growth forecast should speak for itself,” he told reporters after the listing ceremony yesterday.
After listing, Sasbadi market capitalisation stood at RM151.13 million. The company has allocated RM11.5 million to partly-finance the “yet-to-be finalised” acquisitions of publishing businesses.
Law said although Sasbadi has yet to decide on its potential purchase, the current focus of the company is to purchase one or more Chinese-language publishing companies, which would fully complete the company’s footprint in the education industry.
On the digital efforts, Law said currently the digital business is complementing the major book business, and no migration is expected in the near-term.
The initial public offering (IPO) included 21.2 million new shares of which 6.35 million shares were offered to the public, 5.7 million new shares for eligible directors, staff and persons who contributed to the group’s success and 9.15 million shares were placed out.
Sasbadi also offered for sale up to 35.95 million existing shares of which 12.7 million were placed out to Bumiputera investors.
Sasbadi is primarily a publisher of educational materials, undertaking print publishing focusing on primary and secondary school education.
The group also undertakes online publishing of educational materials based on the Malaysian National School Curriculum.