Vin's Holdings Ltd shares increase by 16.7% on trading debut

Vin's Holdings Ltd (Vin's), an Sgcarmart Premium Dealer and Authorised Insurance Workshop, has seen its share price jump by 16.7% on its trading debut, closing at $0.35 on the Singapore Exchange (SGX). This closing price effectively placed the market capitalisation of Vin's at approximately $45.9 million at that point.

Its initial public offering by way of placement of 20,000,000 shares - priced at $0.30 per placement share - was fully subscribed (before the closing price was eventually reached). This was done in part thanks to RHB Bank Berhad, which was the issue manager, full sponsor, and placement agent. The news also means that Vin's now holds the honour of being the first homegrown automotive company to be listed on the SGX.

Shares of Vin's opened at $0.315, 5% above the placement price of $0.30, reaching an intra-day high of $0.37, before closing at $0.35

Vin's has also already outlined clear plans for how it intends to divide the proceeds to enhance its business.

Of the net proceeds raised of approximately $4 million from the placement, $2 million will go towards the enhancement of its IT capabilities and services; $1.2 million will be directed to the expansion of its showrooms, workshops, and after-sale services; and approximately $0.8 million will be apportioned to general working capital purposes.

Vin's has also announced plans to distribute 75% of its FY2024 net profit after tax to its shareholders. This will be proposed at the company's upcoming Annual General Meeting in May 2025, and will include a special dividend as a one-time reward for shareholders' support and confidence in Vin's.

Commenting on its trading debut, Vin's remarked that its successful trading debut reflects the market's confidence in its integrated business model and growth prospects.