OldTown IPO oversubscribed 10.8 times, plans deeper inroads into China

KUALA LUMPUR: Main Market-bound café chain operator and instant beverage mix manufacturer OldTown Bhd is targeting to make deeper inroads into China by the fourth quarter this year.

Its group managing director Lee Siew Heng in a statement Friday, July 1 said that the company, which exports its products to more than 10 countries, targets to make deeper inroads into China by the fourth quarter this year.

“We see great potential in the Chinese market due to the sheer size of the population and will leverage on our initial inroads to expand the revenue contribution,” he said.

He said the company currently exports its beverage mixes to Singapore, Hong Kong, the United States, Canada, Taiwan, Indonesia, Brunei, Thailand, Philippines, China, United Kingdom, Australia, and, since in the first quarter of 2011, New Zealand

Its export market contributed over 10% to its revenue in financial year ended Dec 31, 2010, and the group anticipates to record double-digit growth in its export revenue contribution by the end of 2011, he said.

Lee also said OldTown’s initial public offering (IPO) had been oversubscribed by 10.8 times, after it received 9,366 applications for 117.64 million shares with a total value of RM147.1 million, for the public tranche of 10 million new shares under its IPO.

OldTown is scheduled to list on the Main Market on July 13.