Oldtown Bhd (Oldtown) is upping its ante by penetrating further into the Chinese hinterland so said the Group Managing Director. I think this is what is attracting the heavy over subscription besides its minuscule offer to the general public. The IPO is oversubscribed by 10.8 times.
The cafe chain operator and instant beverages mix manufacturer to be listed on July 13, received 9,366 applications for 117,642,100 shares with a total value of RM147.1 million for the public tranche of 10
million new shares under the IPO.
The IPO consists of a public issue of 63.4 million new ordinary shares and an offer for sale of 33 million vendor shares at RM1.25 each.
The company operates 180 cafe outlets throughout Malaysia and the region and exports its beverage mixes to Singapore, Brunei, Hong Kong, the US, Canada, Taiwan, Indonesia, Thailand, the Philippines, China,
the UK, Australia and New Zealand.
By the fourth quarter, it plans to penetrate even further into the China market.
Oldtown sees great potential in the Chinese market due to the sheer size of the population and will leverage on our initial inroads to expand the revenue contribution.
So have a cuppa in Oldtown sometimes, won't you?
I would like to recommend the Hazelnut coffee.
