OTS Holdings soars on second day of trading

Shares of OTS Holdings, which owns food product brands like Golden Bridge and Kelly’s, continued to climb after a successful debut.

  • OTS Holdings Ltd (SGX: OTS) share price rallied strongly to S$0.34 on day two of trading
  • The food manufacturer and brand builder launched on Thursday (17 June 2021) with a share price of S$0.30
  • This was roughly 30% higher than its initial public offering (IPO) invitation price of S$0.23
  • A total of 25.7 million shares were traded at the end of the first day
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OTS Holdings stock rallies on day two of trading

OTS Holdings Limited shares rallied as much as 17.24% on its second day of trading on the Catalist Board of the SGX-ST.

The food manufacturing group debuted under the stock code ‘OTS’ on Thursday (17 June 2021) with a share price of S$0.30.

It then rose to hit an intraday high of S$0.31 per share, which is 34.8% higher than the IPO invitation price of S$0.23 per share.

By the end of the first day of trading, there were a total of approximately 25.7 million shares traded. Its closing price of S$0.29 per share was approximately 26.1% higher than the invitation price.

‘Today marks the beginning of a major chapter in our company’s history and growth,’ said Managing Director of OTS Holdings, Mr. Ong Bee Chip.

‘We see this as an inflection point from which we embark on our business strategies to further expand our brand portfolio and strengthen our business presence within the targeted markets in Asia.’

Use of funds and future plans

The group said that S$2 million of the approximately S$6.56 million raised from the IPO will be used for improvement and/or expansion of production efficiency and capacities, including the acquisition of new machinery and equipment.

A further S$2.5 million will be used for expansion of the its overseas operations, including the initial investment and set up costs in the Philippines, with S$0.5 million to be used for developing new products and engaging in research and development, and roughly S$1.56 million to be used for general working capital purposes.

Elsewhere, the group is currently in the process of developing its own plant-based food products, such as plant-based canned luncheon meat, to cater to a growing demand for plant-based food products. It intends to launch its new plant-based food products by early 2022.

To further expand its business overseas, the group has established and commenced operations in Indonesia in the first half of 2020 through its associated company, PT Delta Bridge Foods, which is currently manufacturing non-halal Chinese sausages for distribution in Indonesia.

IPO was 233.6 times oversubscribed

At the close of the public offer on 15 June 2021, there were 3,809 valid applications for the one million public offer shares available to the public for subscription and/or purchase.

These applicants applied for an aggregate of 233.59 million public offer shares, with application monies received from such applications amounting to approximately S$53.73 million.

This resulted in the public offer being approximately 233.6 times subscribed.

Meanwhile, the placement tranche of 40 million shares was 2.8 times subscribed.

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