Momo.com Inc (富邦媒), a local online, TV and catalogue shopping company, made its debut on the main bourse yesterday, rising as high as 30 percent from its initial public offering price of NT$230.
At the end of trading, shares closed at NT$283, up 23.04 percent, compared with the broader market’s 1.36 percent increase. The company raised about NT$3.3 billion (US$104.8 million) for future capital expenditure and dividend payouts.
“We aim to gain market share in Taiwan and accelerate expansion into overseas markets,” company chairman Howard Lin (林福星) said during a debut ceremony at the Taiwan Stock Exchange.
Momo’s consolidated revenue was NT$2.07 billion last month, slightly less than the previous month’s NT$2.09 billion, but up 19.53 percent from NT$1.73 billion in November last year.
The company’s cumulative revenue for the first 11 months of this year totaled NT$21.73 billion, rising 17.81 percent from NT$18.44 billion in the same period last year.
“As of November, earnings per share were NT$6.61,” Lin said.
Momo’s online shopping segment accounts for about 62 percent of the company’s total revenue, while TV shopping commands 28 percent and catalogues 7.8 percent, Lin said.
He said the company is set to enhance its logistics service, adding that Momo plans to invest NT$4 billion next year in building a logistics center in Taoyuan County with automatic wrapping machines for unit loads.
The center is scheduled to start operations in 2016, he added.
Momo expanded to the Chinese market in 2011 and to Thailand early this year.
Lin said the company would continue to expand its scale in Thailand and seek business opportunities elsewhere among ASEAN members.
Yuanta Investment Consulting Co (元大投顧) described the newly listed company as a rising star in the nation’s online shopping sector.
“What makes the company unique is the synergy offered by its three shopping platforms and support from its major shareholders,” Yuanta analyst Livia Wu (吳靚芙) said in a client note ahead of Momo’s debut.
Taiwan Mobile Co (台灣大哥大), the nation’s second-largest telecom operator, and South Korean retail giant Lotte Shopping Co hold 49.9 percent and 11.7 percent stakes in Momo respectively.
These two major shareholders would offer solid support to Momo on the back of their industry know-how, Wu said on Thursday.
Products that sell well on the company’s online shopping site momoshop.com.tw (Momoshop, 購物網) can be selected as products for TV shopping and catalogues, saving the firm market research costs, she said.
“We expect Momoshop will be the key growth driver for the company next year and source sharing can create synergy for the overall company,” Wu said.
Taiwan’s growing trend of online shopping will become even more marked in the coming years, benefiting companies like Momo, Tashin Securities Investment Advisory Co (台新投顧) said yesterday.
“The fact that Momoshop ranks as Taiwan’s third-largest online shopping Web site suggests that the company has won Taiwanese consumers’ approval,” Taishin said in a research report.
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