This was a 40% premium on its initial public offering (IPO) price of 30 sen. It recorded a trading volume of almost 20 million shares.

The integrated industrial packaging solutions provider, formerly known as Berjayapak International Holdings Sdn Bhd, raised RM33.9 million from its IPO exercise, according to a press statement from the company issued today.

The company said 38.4% of the proceeds, which amounted to RM13 million, would be used as working capital.

Another RM10 million, or 29.5% of the total, has been allocated for capital expenditure. The company is setting up a new factory in Johor.

A total of RM2 million, or 5.9% of the proceeds, has been set aside for business expansion.

Another RM5 million, or 14.8%, will go towards the repayment of bank loans and the remaining RM3.9 million, or 11.5%, will be used to defray the cost of the listing.

Executive director-cum-CEO Ooi Lay Pheng said the funds raised would enable L&P to move its expansion plans forward, and “elevate us to the next phase of our growth”.

Ooi said that with its utilisation rate for the seven months to July 31, 2022 reaching 90%, the company would have to expand its capacity to take on new business.

“Multinational corporations are relocating and setting up new manufacturing facilities in Southeast Asia, and this bodes well for us,” she said, pointing out that this would result in higher demand for industrial packaging products.

L&P and its subsidiaries design and manufacture wood-based industrial packaging products, comprising boxes, crates and pallets. Its products are used by MNCs in the renewable energy, electronics and semi-conductor, food, automotive as well as packaging industries.

Apart from Malaysia, it also has operations in Vietnam.