OTS Holdings debuts on SGX Catalist board at 30.4% above IPO price

FOOD manufacturing group and brand builder OTS : OTS 0% Holdings (OTS) began its trading debut at S$0.30 on the Singapore Exchange's (SGX) Catalist board on Thursday, 30.4 per cent or S$0.07 above its initial public offering (IPO) price of S$0.23 per share.

OTS's portfolio of brands include Golden Bridge, Kelly's, Golden Lion and Orchid. It has targeted the growing halal food market through retail brand El-Dina and food-service brand Kizmiq through its subsidiary, Ellaziq Singapore.

As at 9.15am, the counter was trading 28.3 per cent or 6.5 Singapore cents higher than its IPO price, at 29.5 cents, with about 15 million shares changing hands. The company was also among the most active counters by volume on SGX in early trade.

The IPO of 41 million shares comprised one million shares under the Singapore public offer - 233.6 times subscribed - and 40 million shares, which were 2.8 times subscribed. Overall, the offering had a subscription rate of 2.8 times.

Based on the invitation price of S$0.23 per share and the post-invitation share capital of 214 million shares, OTS's market capitalisation will be approximately S$49.2 million.

The IPO and issuance of shares will deliver some S$7.9 million in net proceeds, of which about S$6.6 million will be due to OTS. Funds will go towards expanding the group's regional footprint, investment in manufacturing capabilities, research and development, and general working purposes.

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OTS is looking to accelerate its expansion plans in the regional market, particularly in Malaysia and the Philippines. It will also be tapping its research and development capabilities to introduce its shelf-stable plant-based food products by early 2022.

OTS is the second listing on the Catalist board this year. Private nursing home operator Econ Healthcare re-listed on the Catalist board in April, ending its first trading day 3.6 per cent higher than its IPO price of S$0.28.

READ MORE

• OTS Holdings' public offer 233.6 times subscribed

• OTS prices IPO shares at S$0.23 each

• Singapore IPO pipeline looking robust