Butterfield FB Bhd staged a late recovery on its ACE Market debut on Sept 15, closing at 46 sen — two sen or 4.2% below its 48 sen IPO price — after opening sharply lower at 43 sen.
The food and beverage ingredients manufacturer opened at a five-sen discount to its IPO price, with 5.27 million shares traded, before slipping to 41 sen at midday as volume surged to 62.84 million shares.
Buying interest picked up later in the session, lifting Butterfield to 46 sen at the close, with 107.45 million shares changing hands on its first trading day.
The debut comes despite strong demand during the IPO, which was oversubscribed 18.7 times. The Malaysian public portion attracted 12,670 applications for 786.67 million shares worth about RM377.6 million compared to the 40 million shares available.
Butterfield Executive Director and Chief Executive Officer Lee Mong Khai said proceeds from the listing would primarily be channelled into expanding production and storage capacity at the company’s Bukit Minyak premises, including the installation of a new manufacturing line.
“The funds raised through our IPO will be mainly allocated to expand our production and storage capacity at our Bukit Minyak premises, including the installation of a new manufacturing line,” Lee said, adding that these investments will enable Butterfield to meet growing demand, improve operational efficiency and further enhance its ability to serve both domestic and international customers.
Its IPO comprised a public issue of 150 million new shares, representing 18.8% of its enlarged share capital, alongside an offer for sale of 72 million existing shares, or 9%, through private placements to approved Bumiputera and selected investors.
Following the listing, Butterfield has an enlarged share capital of 800 million shares, giving it an indicative market capitalisation of RM384 million based on the IPO price. At Tuesday’s closing price of 46 sen, its market value stood at about RM368 million.
M&A Securities Sdn Bhd acted as principal advisor, sponsor, sole underwriter and placement agent for the IPO.
