Oldtown May Rise 5%-10% On Main Market Debut

NEW LISTING: Oldtown Bhd (5201.KU) may rise 5%-10% from its initial public offering price of MYR1.25 on its main market debut. Oldtown is a food and beverage and fast moving consumer goods company with regional presence in Malaysia, Singapore and Indonesia. The company is raising MYR79.2 million via the IPO and will have a market capitalization of MYR412.5 million. A local dealer says "the company has a good brand presence in the local market, but is under pressure from rising costs and competition which is eating into the margins." In the longer term, he reckons the company should be able to deliver sustainable earnings.