The provider of massage and wellness equipment as well as musical instruments and accessories, was listed on the LEAP Market of Bursa Malaysia Securities and officially commenced trading under the stock short name of SNOWFIT and stock code of 3054 at the opening of trading at 9.00 a.m. this morning.
The stock opened at 16 sen per share, a premium of four sen over its 12 sen reference price. It was last traded at 20 sen per share at the time of writing, which represents a 66% premium over its reference price.
The newly-listed company with its core business activities comprise the design, marketing and retailing of massage and wellness equipment that are marketed and sold under its own brand, “Snowfit”.
Prior to the Group’s Listing exercise, 29 investors, including its substantial shareholders, Directors and key management personnel, have subscribed for 21.1 million new Snowfit Shares, which represents 10% of its enlarged issued share
capital, at a subscription price of RM0.12 per Share.
A gross proceeds of RM2.53 million has been raised. Out of the RM2.53 million total gross proceeds, approximately RM0.40 million has been earmarked for the setting up of showrooms in Perak and Penang as part of the Group’s efforts to reach out to the market in the Northern region of Peninsular Malaysia. Barring any unforeseen circumstances, the Group intends to commence the operations of the Perak showroom by the third quarter of 2022 and the Penang showroom by the end of 2022.
Meanwhile, another RM1.0 million has been allocated for the Group’s working capital requirements which includes the purchase of massage and wellness equipment.
“Our Listing today will allow us to continue strengthening our presence in the domestic market by tapping into the anticipated growth of the massage and wellness equipment industry in Malaysia. The industry which grew at a compound annual growth rate (“CAGR”) of 23.4%, from RM90.4 million in 2016 to an estimated RM209.6 million in 2020 is forecasted to grow at a CAGR of 19.5% between 2021 and 2023, from RM242.1 million to RM345.6 million,” Founder and Managing Director, Low Cheng Yong commented on the listing.
“Looking at the vibrancy of the massage and wellness equipment industry in Malaysia, we believe it is wise to focus on our massage and wellness equipment segment to capture the boundless opportunities in the horizon. Thus, we intend to
wind down and cease our operation of the musical instruments and accessories segment once we have sold our remaining stock.”
