KUALA LUMPUR: Shares of newly-listed SDS Group Bhd opened at 26 sen, a 12 per cent premium to its issue price of 23 sen.
By the closing bell this evening, it closed at 25.5 sen apiece.
SDS Group raised RM23.99 million from the listing exercise.
In a statement today, SDS Group said RM6 million would go to expand its business presence for both the wholesale and retail channels within the northern and central regions of Peninsular Malaysia respectively. This will include additional capacity for its new bread factory in Seremban.
The company will further use RM7.79 million for general working capital requirements, RM7 million to repay bank borrowings while the remaining RM3.2 million will be used to defray listing expenses for the initial public offering.
SDS Group planned to open eight new food and beverages (F&B) outlets under its retail business in established residential areas within the Klang Valley over two years, according to its managing director Tan Kim Seng.
"We expect to open three F&B outlets by October 2020 and the remaining five outlets by October 2021. Currently, SDS Group has 33 F&B outlets in Johor," he said.
Tan said SDS Group will set up two new depots in Bukit Mertajam, Penang and Sungai Petani, Kedah.
It will also buy 18 new delivery vehicles.
"To grow our wholesale business in order for us to extend the reach of our bakery products, we need to widen our distribution network and increase our logistics coverage.
"The two new depots and 18 new delivery vehicles in Penang and Kedah will enable us to cover the northern region," he added.
Currently, SDS Group has 19 depots across Peninsular Malaysia and 250 delivery vehicles distributing its products to some 10,000 customers, which include convenience stores and supermarkets.