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
  • Ready to trade Singapore stocks but only want to put up a fraction of the cost? Open a CFD trading account with us today

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.

Go long or short on Singapore stocks with CFDs

Trading contracts for difference (CFDs) is a way of speculating on financial markets that doesn’t require the buying and selling of any underlying assets.

Find out everything you need to know to understand CFD trading, from what it is and how it works to short trades, leverage and hedging.

Interested in trading CFDs with IG? Open an account with us today.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.