OTS' portfolio of brands include Golden Bridge, Kelly' s, Golden Lion and Orchid.

 

Food manufacturing group and brand builder OTS Holdings began its trading debut at 30 cents on the Singapore Exchange' s (SGX) Catalist board on Thursday, 30.4 per cent, or seven cents, above its initial public offering (IPO) price of 23 cents per share.

 

OTS' portfolio of brands include Golden Bridge, Kelly' s, Golden Lion and Orchid. It has targeted the growing halal food market through retail brand El-Dina and food-service brand Kizmiq through its subsidiary, Ellaziq Singapore.

 

As at 9.15am, the counter was trading 28.3 per cent, or 6.5 cents, higher than its IPO price, at 29.5 cents, with about 15 million shares changing hands.

 

  The counter eventually closed at 29 cents on Thursday with over 25 million shares traded.  

 

Managing director of OTS Holdings Ong Bee Chip said: &ldquo Today marks the beginning of a major chapter in our Company&rsquo s history and growth. We see this as an inflection point from which we embark on our business strategies to further expand our brand portfolio and strengthen our business presence within the targeted markets in Asia.&rdquo

 

The IPO of 41 million shares comprised one million shares under the Singapore public offer - 233.6 times subscribed - and 40 million shares, which were 2.8 times subscribed. Overall, the offering had a subscription rate of 2.8 times.

 

Based on the invitation price of 23 cents per share and the post-invitation share capital of 214 million shares, OTS' market capitalisation will be approximately $49.2 million.

 

The IPO and issuance of shares will deliver some $7.9 million in net proceeds, of which about $6.6 million will be due to OTS. Funds will go towards expanding the group' s regional footprint, investment in manufacturing capabilities, research and development, and general working purposes.

 

OTS is looking to accelerate its expansion plans in the regional market, particularly in Malaysia and the Philippines. It will also be tapping its research and development capabilities to introduce its shelf-stable plant-based food products by early next year.

 

OTS is the second listing on the Catalist board this year. Private nursing home operator Econ Healthcare re-listed on the Catalist board in April, ending its first trading day 3.6 per cent higher than its IPO price of 28 cents.