UnUsUaL's stellar debut on the local bourse was music to the ears of the investors who had bought shares in the concert production firm's initial public offering (IPO).
The counter commenced trading on the Catalist board yesterday at more than twice its IPO price of 20 cents. After a lively session with 13 million shares changing hands, it closed at 43.5 cents.
"The strong response could be due to pent-up investor demand in the listing process," KGI Securities Singapore trading strategist Nicholas Teo said, referring to the fact that the IPO was done via placement, with no public tranche.
Plans to list UnUsUaL had been in the making since last year before 51 per cent owner mm2 Asia - itself a listed film and TV show company - launched the IPO last week.
The 96.99 million placement shares raised about $19.4 million, putting the firm's market capitalisation at about $128 million.
Singapore-headquartered UnUsUaL is a well-known brand among local concertgoers. Some of the big, sold-out shows it organised here recently included Chang Hui-mei's National Stadium concert last year and Jacky Cheung's concert at the Singapore Indoor Stadium in February.
The firm's strong footing in the entertainment industry drew pre-IPO investment of $1 million from Singapore Press Holdings, which now owns about 5 per cent of UnUsUaL.
The firm's chief executive, Mr Leslie Ong, said his company organises about 15 shows annually in Singapore and Hong Kong.
"We are hoping to expand regionally and do double the amount (of shows). We're looking at China, where mm2 can take us with its strong network there… We also had our first Bangkok show last year," Mr Ong told The Straits Times at UnUsUaL's listing ceremony at the Singapore Exchange (SGX) yesterday. He added that UnUsUaL aims to develop more original shows and events like the Snow Wolf Lake musical it helped launch in the 1990s.
UnUsUaL's listing was the fourth on the SGX so far this year - and the third on the Catalist board - following coffee-shop operator Kimly's listing in March.
On its first trading day, Kimly enjoyed a 120 per cent surge from its IPO price of 25 cents. The counter has remained hot since, closing at 48 cents yesterday.
SGX market strategist Geoff Howie noted that the most recent 10 Catalist IPOs have averaged 56.2 per cent returns compared with their initial offer prices.
The listing pipeline is looking fairly healthy, as the bourse expects Aoxin Q&M to be on the Catalist board by the end of this month. The Chinese unit of the local dental group is being spun off in an IPO priced at 20 cents apiece.
