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LHN Logistics shares open at 20.5 cents on trading day, 2.5% higher than IPO issue price

Felicia Tan
·3-min read

As at 3.18pm, shares in LHN Logistics are trading at 19.6 cents.

Shares in LHN Logistics opened at 20.5 cents apiece when the company joined the Singapore Exchange’s (SGX) Catalist board on April 29. The price is 2.5% higher than its IPO issue price of 20 cents.

LHN Logistics, which is a spin-off of dual-listed LHN, is trading under the stock code “GIH”.

LHN Logistics Limited is the Singapore-based logistics services group of LHN. It has two principal business segments, transportation and container depot services.

The day before it was publicly listed, LHN announced that it had successfully completed its placement of 25.24 million placement shares at 20 cents apiece.

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The placement raised some $5 million.

“We are proud to be able to present investors with unique opportunities offered by the logistics sector with the listing of LHN Logistics, as an independent entity alongside its parent company, LHN Limited. LHN Logistics Limited comprises two principal business segments, namely The Transportation and Container Depot Services Business, of which the entry barrier has always been high. With our expertise, our cross-border capacity, and our future ISO tank depot (to be operational in 2023), we are confident to fulfil our mission to create values for shareholders on a sustainable basis,” says Kelvin Lim, executive chairman of LHN Logistics.

“The IPO listing no doubt will open the door to limitless opportunities for growth and investment. By having our own dedicated platform to raise capital, LHN Logistics Limited can further strengthen our position in the market, generate better valuation, as well as expand our operations to meet the surging demand in the region,” he adds.

Mohamed Nasser Ismail, global head of equity capital markets at SGX, says, “We are delighted to welcome LHN Logistics Limited to Catalist, offering it a platform to enhance its visibility and access to capital, while allowing its parent company LHN Limited the opportunity to enhance its market positioning. We look forward to our continuous partnership with the two companies as LHN Logistics embarks on its growth strategy to increase the scale of its operations, improve its value-added transportation services, and expand into new markets.”

LHN Logistics has a market capitalisation of around $34 million. Its listing brings the total number of companies on the Catalist board to 217 with a combined market capitalisation of $10 billion.

Looking ahead, LHN Logistics says it plans to utilise its strengths to grow its transportation fleet, position itself as a one-stop solution and enhance its value-added transportation services with the addition of its ISO tank depot. The company also seeks to continue its expansion to other Asean countries.

In addition, the company sees demand for logistics services increasing alongside further port developments in Singapore.

In line with this growth, LHN Logistics has commenced the construction of a new ISO tank depot for bulk storage of dangerous goods and ISO tanks, and to also offer washing and repair services for ISO tanks. The construction of this ISO tank depot at 7 Gul Avenue has commenced in April 2022 and is expected to be completed within 12 months.

“We are confident that we are able to further capitalise on the growing logistics and depot sectors with promising potential on the back of post-pandemic economic growth, Singapore’s growing chemical industry, as well as policy support for making Singapore a logistics hub and the world’s busiest container transhipment port. On top of these, witnessed growth in manufacturing activities in Asean will also benefit the company’s further expansion plans in the region,” Lim adds.

As at 3.18pm, shares in LHN Logistics are trading at 19.6 cents.

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