Thursday 28 Mar 2024
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This article first appeared in The Edge Malaysia Weekly, on December 21 - 27, 2015.     

 

WITH its share price more than tripling since its debut, Only World Group Holdings Bhd (OWG) is probabaly the star performer of initial public offerings (IPOs) for the past one year. The amusement park, food and beverage and resort operator debuted on Bursa Malaysia in December last year. Other stocks that listed this year are either ending the year in the negative territory or with less than 20% gains.

The share price of OWG has skyrocketed since its debut on Bursa Malaysia in December 2014. The IPO was offered at 88 sen apiece, raising RM49.6 million — a relatively small listing. The stock has shot up 207% to RM2.70 as at Dec 17, making it one of the top performers on the Main Market of Bursa Malaysia within the period.

The single largest shareholder in OWG is Datuk Seri Koh Cheng Keong, who holds 59.37% equity interest through Rich Dad Café Sdn Bhd.

The company sprang quickly into action after its listing. In July, OWG announced that it was expanding its portfolio through the acquisition of a 60% stake in Escaperoom Holdings Sdn Bhd for RM5.4 million cash.

A few months later, the company proposed a one-for-five bonus issue of up to 37 million shares.

In terms of its financial performance, OWG recorded a modest rise of 4.6% to RM86.9 million for the financial year ended June 30, 2015 (FY2015). But net profit dropped 3% to RM14.55 million due to an increase in administrative expenses, including the one-off listing expenses incurred during FY2015.

Going forward, the company is opening several new food service and recreation outlets at the Komtar building in George Town, Penang, this year.

“The group’s steadfast determination and collaboration between the building owner and the Penang authorities have enabled OWG to achieve [the] rapid transformation of Komtar into a key tourist landmark,” it said in its 2015 annual report.

It says its first fine-dining restaurant on Level 59 of Komtar will open for business in June 2016.

OWG is also in the process of upgrading and expanding its existing water parks, in a bid to enhance their value and appeal to visitors.

The amusement parks under its portfolio include Wet World Water Park in Shah Alam, Selangor, Pedas, Negeri Sembilan, and Batu Pahat in Johor, STARship Galactica in 1Utama Shopping Centre in Petaling Jaya, Selangor, and Ripley’s Believe It or Not in Genting Highlands on the Selangor/Pahang border.

 

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