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Newly ACE-listed Mobilia top active, opens at 183% premium to IPO price of 23 sen

Newly ACE-listed Mobilia top active, opens at 183% premium to IPO price of 23 sen
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KUALA LUMPUR (Feb 23): Home furniture manufacturer Mobilia Holdings Bhd made an impressive start on the ACE Market of Bursa Malaysia and was both the most actively traded and top gaining stock in early trade.

The stock opened at 65 sen — a 183% premium to its IPO price of 23 sen.

At the time of writing, the stock stood at 67.5 sen with 125.8 million shares traded.

According to its prospectus, the company's IPO exercise saw the issuance of up to 60 million new shares, comprising a public issue of 20 million shares, while 28 million placed out to identified investors, and the remaining 12 million set aside for eligible employees of the company, at an issue price of 23 sen apiece.

Mobilia’s IPO — which was oversubscribed 92 times — is the third listing for the year. 

The company raised about RM13.8 million from its IPO which will mostly be spent on the construction of office, showroom and factory to support the group's long-term growth.

Mobilia designs and manufactures home furniture. Its product range includes furniture for the dining room, bedroom and living room. 

Mobilia listed out in its prospectus the group’s business strategies moving forward include expanding its current manufacturing plant to support long-term business growth, to purchase additional machinery to increase automation and to expand its range of home furniture. 

Its risks include Covid-19 outbreak disruptions to its business and operations as well as foreign exchange currency fluctuations risk which may impact the group’s revenue given its topline is largely denominated in US dollar. 

Its prospectus noted that for FYE2019 (Dec 31), 28.96% of its revenue comes from North America, 21.48% from Asia (excluding Malaysia), 11.51% Europe, 13.23% South America, 0.87% Australasia. This means 66.37% of its RM75.59 million FY2019 total revenue comes from overseas sales while 33.63% came from Malaysia. 

Mobilia’s revenue rose from RM55.73 million in FY2017 to RM66.50 million in FY2018 and continued to grow to RM75.59 million in FY2020.

Meanwhile, net profit fell marginally from RM6.26 million in FY2017 to RM6.24 million in FY2018. It then rose 35% year-on-year to RM8.42 million in FY2019. 

In its latest financial statement posted on Bursa Malaysia for the year ended FY2020, Mobilia saw its top line rising marginally by 1% year-on-year to RM76.4 million while net profit grew 3% in the same period to RM8.66 million.  

Read also:
ACE Market-bound Mobilia to raise RM13.8m from IPO

Surin Murugiah