Investors taste Little World Beverages premium on debut

Little World Beverages Ltd, the Perth-brewers of boutique beer Little Creatures, debuted on the ASX at a 10 per cent premium to its $1 subscription price.

Shares in the company traded as high as $1.15 each in early trading.

Little World raised $21 million for its IPO and, at $1 per share, the brewer has an initial market capitalisation of about $59 million.

Funds raised in the IPO would be used to increase production capacity at the existing Fremantle brewery and to build a new WA brewery to meet longer-term requirements.

The company also hopes to increase its presence in the eastern states through broader sales representation.

Chief executive Jason Marinko has said listing on the ASX will capitalise on the positive outlook for the premium beer market.

The company reported a net profit of $2.38 million in 2004/05 and has forecast an increased profit of $2.63 million for 2005/06.

The company was formed in 2000 when a group of friends set about making the flagship Little Creatures Pale Ale beer for their own consumption.