Friday 29 Mar 2024
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KUALA LUMPUR (Dec 19): Newly-listed food service outlet (FSO) and theme park operator Only World Group Holdings Bhd’s (OWG) initial public offering came at an inopportune time, causing it to face lukewarm reception from investors.

The stock, which made its debut on the Main Market of Bursa Malaysia on Thursday, dipped as much as 3.8% in the morning trade today although broader market was rising.

The counter was down as much as 3.5 sen or 3.8% to 88 sen, which is also its IPO offer price.

At 12.19pm, Only World was down 2.5 sen or 2.73% to 89 sen with  2.79 million shares done.

Mewnwhile, the FBM KLCI rose 15.19 points or 0.89%.

Alliance Investment Bank remisier Raymond Foo said OWG had been listed at a time when it was facing much external headwinds.

“The oil price fell tremendously and the stocks from the oil and gas sector dipped. The overall market sentiment is not good. It is not a right time for OWG to be listed.”

He opined that investors who managed to subscribe the shares from the IPO were “in a rush” to cash out after the counter closed higher at 91.5 sen yesterday, following a technical rebound of the broader market.

“OWG is not attractive to investors as its financial results were just so-so,” he said, adding that the company reported a net profit of merely a few million ringgit in its latest quarter.

To recap, OWG posted a net profit of RM 3.04 million in its first quarter of financial year  2015 (1QFY15). Its revenue was at RM19.22 million.

Only World’s share price fell as much as 20 sen or 22.7% to 68 sen from its IPO of 88 sen shortly after morning trade started on its debut.

However, the stock rebounded to finish its maiden trading day on the Main Market of Bursa Malaysia, up 3.98% at 91.5 sen.

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