Cuckoo International (MAL) Bhd concluded its inaugural trading session on the Main Market of Bursa Malaysia with shares closing unchanged at RM1.08, the same as its finalised initial public offering (IPO) price. The flat debut followed a volatile day of trading, with the stock opening marginally higher at RM1.09 and touching a high of RM1.11 before settling back to its offer price. A total of 42.73 million shares changed hands during the session.
At its closing price, Cuckoo International, best known for leasing water purifiers and a range of home appliances, achieved a market capitalisation of RM1.6 billion. The company’s IPO journey had been marked by a two-month delay, attributed to global market uncertainty. Ultimately, the share price was reduced in response to subdued investor demand.
Retail investor interest exceeded the allocated tranche by a modest 1.42 times, while certain institutional tranches were undersubscribed and subsequently reallocated. The cautious market sentiment also prompted a downward revision in the total offering size. The overall proceeds raised amounted to RM395 million, representing a 16% shortfall from the original RM471 million target.
Of the total raised, approximately RM155 million was directed to the company, earmarked for expansion of its rental-based business model, repayment of bank borrowings, capital expenditure on new brandshops, IT infrastructure enhancements, and regional growth into Singapore. The remainder, approximately RM240 million, was realised by selling shareholders.
Cuckoo’s scaled-down offering reflects similar recent trends in the local market, including the IPO of Eco-Shop Marketing Bhd, which also reduced its share sale by close to 7% due to soft investor appetite.
RHB Investment Bank acted as the sole principal adviser, joint global coordinator, joint bookrunner, managing underwriter and joint underwriter for the IPO. AmInvestment Bank served as joint global coordinator, joint bookrunner, and joint underwriter.
-The Edge
