Soft ASX debut for China-focused freight forwarder Wiseway Logistics
China-focused freight-forwarder Wiseway Logistics made its ASX debut at an 11 per cent discount on Wednesday morning.
The stock (ASX:WWG) opened at 45c compared to its 50c issue price — before tumbling to an intraday low of 40c.
Wiseway raised about $20 million of the $26.1 million it was aiming for in its initial public offering prospectus.
Wiseway provides air and sea freight servces and warehousing to about 700 customers in the general and perishable cargo segments.
It claims a 70 per cent share of the outbound air freight market to mainland China and focuses on segments populr with ASX investors including infant milk formula and vitamins along with dairy, meat and seafood
Chairman Geoff Raby told investors of the “growth opportunities resulting from increasing demand in the Asia-Pacific region… The purpose of the offer is to facilitate the future growth expected by Wiseway.”
Wiseway listed for access to capital markets to fund future growth, as well as to “allow the founders to realise some of their investment in Wiseway”.
Founders Roger Tong and Florence Tong together hold more than half the company’s issued shares — and $6.1m of the funds raised in the IPO will be paid to them.
The company reported higher revenue of $82.2 million last year and profit of $1.2 million.