KUALA LUMPUR: Shares of Malaysia's "kopitiam" chain operator OldTown Bhd did well on their debut yesterday, bucking an overall sluggish market with a 7 sen premium at the close.
It was the most active stock, with a total of 51.7 million shares traded.
At the opening bell, the stock rose 10.4 per cent to RM1.38 against its initial public offering price of RM1.25 and hit a high of RM1.33 before ending the day at RM1.32.
Speaking to reporters after the listing ceremony, its chairman Datuk Dr Ahmed Tasir Lope Pihie said its strong brand helped with the first-day performance.
"Under the current market situation, we are still able to capture market confidence," he said.
Ahmed said OldTown plans to expand its operations and export the brand to other countries in the region soon.
"That is very evident and clear. Taking the brand and moving it into the regional market will be a plus sign for us." he said.
Meanwhile, group managing director Lee Siew Heng said the company intends to continue growing by leveraging on its established brand name, comprehensive distribution network and proven business model as an integrated coffee beverage manufacturer and cafe operator.
"We are on track to reach our target of 38 outlet openings by year-end. So far, we have opened 14 outlets in 2011," he said.
As of this month, Lee said the company is opening three outlets in Sungai Buloh and Jalan Pahang in Kuala Lumpur as well as Miri, Sarawak. "We will open two more outlets at I-City in Shah Alam and Bandar Sri Permaisuri in the Klang Valley by the end of the month," he said.
Lee said by 2014, the company expects to operate 300 outlets around the region.