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STOCKS NEWS SINGAPORE-Maxi-Cash up 28 pct above IPO price
Shares of pawnbroker Maxi-Cash Financial Services Corp Ltd surged as much as 28 percent above its initial public offering price, on its market debut, outperforming the broader market.
By 0217 GMT, shares of Maxi-Cash were traded at S$0.38, 27 percent above its IPO price of S$0.30, while the Straits Times Index <.FTSTI> was down 0.5 percent.
Around 28.3 million shares were traded, making it the second most actively traded stock by volume. Maxi-Cash sold 56 million new shares, raising S$16.8 million in the IPO.
Maxi-Cash has the largest network of pawnshops and retail outlets in 24 locations in Singapore, and has about 13 percent market share of the licensed pawnbroking business, AmFraser Securities said.
The company will also benefit from growth in Singapore's pawnbroking business, which saw amount of loans disbursed at pawnshops grow at a compounded 16 percent on average a year from 2000-2011, AmFraser said.
"There's a perception that Maxi-Cash's earnings may be more defensive because even during times of recession, the pawnbroking business will still do well," said a local trader.
Source: Reuters