Butterfield FB opens at 10pct discount despite strong IPO demand
KUALA LUMPUR: Butterfield FB Bhd got off to a bitter start on its ACE Market debut today, opening at 43 sen, five sen or 10.42 per cent below its initial public offering (IPO) price of 48 sen.
KUALA LUMPUR: Butterfield FB Bhd made a disappointing start to its trading day on the ACE Market, opening 10.42 percent below its IPO price of 48 sen at 43 sen. The company, which specializes in coffee and tea extract powder blends, slipped to 41.5 sen, or 13.54 percent from its IPO price, before recovering slightly. At 9.18am, Butterfield FB was trading at 44.5 sen, down 7.29 percent, with 24.23 million shares exchanged.
The initial public offering was met with strong demand, being oversubscribed 18.67 times, raising RM72 million from the sale of 150 million new shares. The valuation at IPO was RM384 million, roughly 12.6 times the company's earnings per share of 3.8 sen for the fiscal year ending March 31, 2026. Butterfield FB produces coffee and tea extract powder blends for food and beverage manufacturers and brand owners, and has recently added matcha powder blends to its portfolio, with a dedicated production line capable of generating 312 tonnes of product annually.
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