OTS Holdings ends first day trading 6 Singapore cents above IPO price
Claudia Tan HS
FOOD manufacturer and brand builder OTS Holdings (OTS) on Thursday ended its first day of trading on the Catalist board at S$0.29, 26.1 per cent or S$0.06 above its initial public offering (IPO) price of S$0.23.
From the start of trading at 9am till market close, the shares traded within a band of S$0.28 to S$0.31 after some 25.7 million shares changed hands.
Shares of OTS opened at S$0.30, up S$0.07 or 30.4 per cent from its IPO price. Its share price rose to reach an intraday high of S$0.31 within the first minute of trading and dipped below 30 Singapore cents by about 9.15am. It traded between 28 cents to 29.5 cents for the rest of the trading session before ending at 29 cents.
Based on the invitation price of S$0.23 per share and the post-invitation share capital of 214 million shares, OTS' market capitalisation will be approximately S$49.2 million.
The placement tranche of 40 million shares was 2.8 times subscribed, and the public offer of a million shares was 233.6 times subscribed.
OTS managing director Ong Bee Chip said in a statement: "Today marks the beginning of a major chapter in our company's history and growth. We see this as an inflection point from which we embark on our business strategies to further expand our brand portfolio and strengthen our business presence within the targeted markets in Asia."
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The company has a strong niche in ready-to-eat and ready-to-cook meat products and is known for its Golden Bridge brand luncheon meat. Other brands under its portfolio include Kelly's, which focuses on Western-style meat, the Golden Lion brand that serves various food service businesses as well as its Orchid brand that has a range of ready-to-eat meat products targeting overseas markets.
It has also reached the growing halal food market through retail brand El-Dina and food-service brand Kizmiq through its subsidiary, Ellaziq Singapore.
OTS generates sales from supermarkets, convenience stores, provision shops, wholesalers as well as from food-service providers such as hotels, restaurants, hawker centres, food courts and caterers. It also has a presence on e-commerce platforms such as Qoo10, Shopee and Lazada.
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.
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.
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