KUALA LUMPUR (Jan 20): HPP Holdings Bhd's share price jumped by as much as 68.05% to 60.5 sen this morning, marking a strong debut on Bursa Malaysia's ACE Market.

At 10.04am, the share pared some gains to trade at 55 sen, which was still 52.7% higher than its initial public offering (IPO) price of 36 sen. About 105.19 million shares were traded, making it Bursa's most active stock.

Notably, within the first two hours of trading, a third of the group's issued share capital, which amounts to 388.43 million shares, had been traded.

Shares of the offset packaging printing specialist opened higher at 57 sen, a 58.3% premium to its IPO price.

According to a statement by HPP Holdings, its IPO was oversubscribed by 33.44 times.

The IPO comprised 108.67 million shares, with 19.42 million shares made available to the Malaysian public, 30 million shares for eligible directors, employees and business associates, 19.83 million shares for private placement to selected investors. The remaining 39.42 million shares was set aside for Bumiputera investors approved by the Ministry of International Trade and Industry.

"The company will raise proceeds of approximately RM31.9 million, of which RM13.0 million will be utilised for capital expenditure such as acquisition of printing machines, RM7.8 million for repayment of bank borrowings, RM5.2 million for working capital and RM2.0 million for sales and marketing expenses. The remaining proceeds of RM3.9 million will be for defrayment of IPO expenses," it said.

At its virtual listing ceremony this morning, its non-independent non-executive chairman Lau Kim Wah said the IPO provides a platform for the group to realise its aspirations and accelerate its expansion plans.

"It also elevates our status to be part of a world-class exchange such as Bursa Malaysia. I have confidence that our team will scale greater heights under the capable stewardship of our group managing director Kok Hon Seng and executive director Ng Soh Hoon," he added.