PETALING JAYA: Baba Eco Group Bhd made its debut on the LEAP Market of Bursa Malaysia today at 16 sen, representing a 23.08% premium over its offer price of 13 sen. A total of 130,500 shares were traded throughout day.
Under the listing exercise, Baba Eco raised RM3.58 million via placement of 27.5 million new shares at an issue price of 13 sen each to sophisticated investors.
Of the amount raised, 41.96% has been allocated for capital expenditure, 13.99% for research and development expenditure, 13.99% for overseas expansion, 22.37% for the purchase of production equipment and 7.69% for working capital.
For the six months ended April 30, 2019, the group’s net profit fell 10.21% to RM1.24 million from RM1.38 million a year ago due to a 8.69% drop in profit margin as a result of higher material costs and administrative expenses incurred during the period.
However, revenue rose 9.84% to RM14.55 million from RM13.24 million a year ago driven by improved sales recorded from both the manufacturing and merchandising segments.
Baba Eco is an integrated gardening supplies providerunder its proprietary brand name “Baba”. It is involved in the manufacturing and trading of eco-friendly biodegradable plastic flower pots and planting media.
The group aims to broaden its market presence overseas particularly in the Southeast Asia region.