Leong Hup ends unchanged at RM1.10 on relisting

The largest listing in the past 2 years opened its maiden trading day at RM1.12 before hitting a high of RM1.19


Leong Hup International Bhd made a tame debut on the Main Board of Bursa Malaysia with its share price closing unchanged at RM1.10 as the market benchmark FTSE Bursa Malaysia KLCI fell 12 points or 0.76% to 1,599-point level despite an encouraging first-quarter (1Q) economic growth figure.

The largest listing in the past two years opened its maiden trading day at RM1.12 before hitting a high of RM1.19 but profit-taking saw Leong Hup’s share price slide lower to close the day at RM1.10 per share.

The counter was the most actively traded counter for the day with 215.4 million shares exchanging hands, and giving the regional poultry player a market capitalisation of RM4 billion.

Leong Hup is the largest initial public offering on Bursa Malaysia since Lotte Chemical Titan Holding Bhd’s listing in July 2017.

Leong Hup intends to use 75% of the RM275 million raised for capital expenditure and business expansion in the Philippines and Indonesia.

The poultry concerns share offer was oversubscribed by 3.64 times. TA Securities Bhd and JF Apex Securities Bhd has a target price of RM1.43 while Interpac Securities Sdn Bhd has a target price of RM1.27 on Leong Hup.

Leong Hup posted a net profit increase of 15% year-on-year (YoY) to RM60.58 million in the 1Q ended March 31, 2019, on higher sales volume and increased selling price of eggs and broiler chicks in Malaysia and Indonesia respectively. Its revenue for the quarter increased by 11.2% YoY to RM1.51 billion, a recent exchange filing stated.

Leong Hup is one of the largest integrated poultry, egg, and livestock feed producers in the region, with business presence in Malaysia, Indonesia, Singapore, Vietnam and the Philippines.

It has an estimated 10% share of the broiler chicken market in Malaysia. It was de-listed from Bursa Malaysia in April 2012.