PETALING JAYA: Johor-based pawnbroker Well Chip Group Bhd’s shares surged 43.48% to RM1.65 with over 758,000 shares changing hands at its listing on the Main Market of Bursa Malaysia.
The jump represented a 50 sen increase over its initial public offering (IPO) price of RM1.15 per share.
At 5pm, Well Chip closed seven sen higher to RM1.72. It was the fourth most active stock with 106.75 million shares traded
Chief executive officer Ng Hooi Lang said Well Chip is bullish about its performance, leveraging the growth of the pawnbroking industry.
Well Chip is mainly involved in pawnbroking services as well as business of retail and trading of jewellery and gold.
According to an independent market research report, the pawnbroking industry is expected to expand at a four-year revenue compounded annual growth rate of 11.4% from RM3.56bil in 2024 to RM5.3bil in 2028.
After having raised RM172.5mil from its IPO, Ng said Well Chip is looking to solidify its presence in Johor by opening five additional pawnshops from its current 23 locations.
It also planned to launch two new store locations in Melaka, signifying its entrance into a new market.
A sum of RM40mil will be allocated for its expansion plans, in which the new stores are set to open by 2026.
“Within this business, our competitors are very fragmented and rather small. So there is a chance for us to maybe acquire other firms and grow our capital,” Ng told a press confrence after Well Chip’s listing in Kuala Lumpur yesterday.
When asked if there’s a possibility of Well Chip venturing into syariah-compliant pawnshops, chairman Mak Lye Mun said the group has yet to consider venturing into them.
“However, if there is a need and we see a demand for it, why not,” suggesting that Well Chip would give Ar-Rahnu (Islamic pawn broking) some thought as a potential opportunity.
“We will always be on the lookout for any future business opportunities and may explore acquiring other businesses in the same industry. Going public will enhance our credibility and attract further business endeavours,” he added.
Well Chip has a dividend policy of at least 35% of its consolidated profit after tax to be given to its shareholders for the next three years.
