Hiap Huat Holdings Bhd lists in Malaysian stock exchange

Hiap Huat Holdings Bhd, Malaysia’s only used oil recycler, has successfully debuted Bursa Malaysia’s ACE market. The issue price of 20 sen (US$0.08) surged 62.5% to 32 sen (US$0.10), although it eased and settled for the day at 25 sen (US$0.081), ending the day with 196 million shares traded. Shares were oversubscribed 136 times during the balloting exercise. The company raised RM17 million (US$5.5 million), of which RM8.2 million (US$2.6 million) will be used as working capital, RM4.5 million (US$1.4 million) for capital expenditure, RM2.3 million (US$ 753,183) for listing expenses and repayment of bank borrowings in the amount of RM2 million (US$ 654,942).
Hiap Huat Chairman Zulkifly Zakaria announced that the company will use part of its RM17 million (US$5.5 million) listing proceeds to fund its expansion into developing countries which have markets ready for recycled oil products, including Indonesia, Myanmar, Vietnam and the Philippines. He added that talks are already ongoing with potential partners in those countries.
Hiap Huat was established in 1985 as a trading firm for products such as construction materials, later expanding to collecting, recycling, refining, storing and producing recycled products.
Talking about future prospects, Group Managing Director Chan Say Hwa is confident that the good third quarter results this year in the medium and medium-low market will continue until next year. Added to this will be the expected revenue contribution from its new plant in Pulau Indah, Selangor, by the first quarter of 2013 and later on in Sabah and Sarawak.
For the third quarter ended September, the company made a net profit of RM2.2 million (US$720,309), from revenues of RM9.8 million (US$3.2 million). (November 27, 2012)