CFA Society Singapore
SINGAPORE (Nov 27): Samurai 2K Aerosol, the best performing IPO of 2017, is raising money for further growth.
A company that sells spray paints, Samurai 2K Aerosol is placing out 10 million new shares at $1.008 each to raise net proceeds of $9.6 million for business development and expansion. UOB Kay Hian Private has been appointed the placement agent.
Samurai 2k Aerosol sold shares in an IPO at 20 cents each in January, making it the first listing of the year. The stock closed on Monday at $1.12, up 460% since the IPO.
The placement price represents a discount of 9.9% to the volume weighted average price of $1.1191 per share for all trades done Nov 22, the last full market day before a trading halt of the shares was called on Nov 23 for the placement announcement.
Upon completion of the proposed placement, the new shares represent 9.1% of the enlarged issued share capital of the company.
According to The Edge Singapore cover story this week, the company, founded by CEO Ong Yoke En, has created its own aerosol canister with two chambers.
When used for the first time, the smaller chamber breaks open, allowing certain additives to mix with the paint and providing a hard-wearing protective coating to the surface that is painted.
In the first half ended June 30, Samurai 2k Aerosol saw earnings jump more than fourfold to MYR 6.4 million ($2.1 million) from a year ago. This came on the back of a 101.6% increase in revenue to MYR 34.5 million.
The growth in revenue was especially pronounced in Indonesia, which increased by nearly tripled to MYR 19.8 million, overtaking its home market of Malaysia, which grew at a slower 32.2% to MYR 11.5 million.
The company attributed the growth to a range of marketing activities.
To find out more about Samurai 2K Aerosol and how well the other stocks which listed this year have performed, get your copy of The Edge Singapore.