Kuala lumpur: Hock Soon Capital Bhd made a subdued debut on Bursa Malaysia's Main Market, opening at 53 sen, 7 sen below its initial public offering (IPO) price of 60 sen, amid weaker-than-expected investor demand. Ahead of the listing, the Perak-based poultry producer's IPO shares were oversubscribed by just 0.36 times.

According to BERNAMA News Agency, Executive Director Alex Ong stated that the company remains focused on its long-term expansion plans despite the softer opening. Ong emphasized that while the opening price is lower than the IPO price, the company should focus on its expansion plan, highlighting strong fundamentals and a promising growth trajectory.

Ong mentioned that the group's immediate priority is the development of its Teluk Intan expansion project, which is expected to enhance production capacity progressively. He also noted that a strengthening ringgit would help ease feed costs, as most feed materials are sourced from Argentina, Brazil, and Ukraine.

Discussing the removal of government subsidies for egg producers, Ong remarked that these subsidies were initially introduced during the pandemic to mitigate the impact of price controls amid shortages. He expressed confidence in maintaining good earnings and resilience, citing consistent demand for eggs as a staple food.

Ong also revealed plans to expand into Singapore, with the audit completed in July last year. The company is awaiting a response from the Singapore Food Agency, expected by the first quarter. The initial target is to achieve at least a five percent revenue contribution from exports to Singapore.

On operational efficiency, Ong shared that the group intends to replicate the modern farming methods used at existing facilities for the Teluk Intan project, while remaining open to adopting new technologies where appropriate.