STYLE Plantation Limited last week successfully listed on the Australian Stock Exchange.
The Perth-based company specialises in the manufacture of environmentally sustainable timber products, most notably bamboo.
After listing at 20 cents, its first day on the market resulted in the company’s shares closing at 22 cents.
“We saw 2.2 million shares traded today, representing 15 per cent of the tradable shares on issue in the company, which demonstrates a robust and solid depth of market for the shares,” Style Plantation managing director Greg Johnson said.
“The market in the options was very robust with 1.65 million options traded and a strong closing at 5.5 cents.”
The company has raised $2.5 million from 12.5 million shares issued. Of this, $1.5 million will be used to fund expansion of production of joint venture facilities in China.
The remainder will be used to expand operations in Australia and New Zealand.
Style Plantation currently has four retail outlets in WA and two in Queensland. Franchise stores are contracted to open in NSW, New Zealand and at two locations in Queensland.
All stores sell flooring, wall and ceiling panelling, furniture and decorative items.
By the end of 2004, Style Plantation expects to have 20 stores open.
The vertically integrated company aims to quadruple its bamboo flooring production from 150,000 to 600,000 square metres per annum.
Mr Johnson said flooring demand would be fuelled by product quality and a growing consumer trend towards renewable timber, offsetting increasing resistance to the use of timber from natural forests.
He said bamboo was one of the most environmentally sustainable products on the flooring market and that it was superior in quality and more durable than most hardwood timber floor products.
It can be supplied ready to lay, glued in position and is useable within minutes of installation.
Australia currently represents 27 per cent of the existing customer distribution of Style Plantation’s China exports, whereas the US represents 53 per cent of the market.
Style Plantation has had some high-profile exposure, including the 2003 Big Brother House, the Stockland Telethon Home and the Subiaco Sustainable Demonstration Home.