Beer maker Broo makes strong market debut

Shares in the Sorrento-based brewer leapt by a quarter after it floated on the ASX earlier this morning.

Broo founder and CEO Kent Grogan sample his product at St Kilda beach.

An emerging brewer has enjoyed a strong debut on the share market, adding $2.7 million to its value.

Shares in Broo Limited (BEE) have jumped by a quarter in their first few hours on the market, up five cents from their issue price of 20 cents, taking its market value to $13.2m.

About 489,000 shares have so far changed hands since they began trading at 11am (AEDT), about nine per cent of its shares on issue.

Broo currently makes two beers — Broo Premium Lager and Australia Draught — which it markets as premium mainstream beers, rather than craft beers. They are currently brewed in another company’s brewery in NSW, and the company has plans to establish its own facility.

Broo has also signed a supply and distribution agreement to brew and sell Broo Premium Lager in China, the world’s largest beer market by volume. It raised $10.5m through the issue of 52.5 million shares ahead of its market listing, and those funds will be used to expand its operations in Australia and China.

AAP