PACIFIC Plywood has had a wobbly debut on the stock exchange, dropping by 9.5 per cent before recovering to close just above its issue price. Shares of the Malaysian plywood maker ended the day at $1.16 after it sold them at $1.15. In mid-morning trade the shares fell to $1.04. Budiono Widodo, chairman of Pacific Plywood, said: 'We are pleased that investors are enthusiastic in our shares and even the slight increase in the share price meant encouragement to us.' The result was reasonable, brokers said, even though the share failed to take advantage of a general upsurge of the market on the day. The Hang Seng Index rose 86.01 points to 9,373.91. Howard Gorges, director of South China Brokerage, said the fact the shares showed weakness early was not a good sign. 'Some people were a bit sceptical about the company because it did not list in Malaysia. It chose to list in Hong Kong rather than stay in its own neck of the woods,' he said. Pacific Plywood raised $253 million through an issue of 220 million new shares at $1.15. Of these, 110 million sold to the public were oversubscribed 2.2 times. Shares offered under the issue and placing represent 25 per cent of the firm's enlarged issued capital. Pacific Plywood said it would spend $95 million of the money raised to build a factory in Dalian and buy machinery to invest in value-added plywood projects. Another $134 million will fund expansion of its production in Sarawak and Singapore.