Karex, the Malaysian company that manufactures the bulk of the world’s condoms has proven once again that even on the stock market, sex sells. The condom manufacturer launched its IPO on the Malaysian market yesterday, and the results left the company’s leadership completely satisfied.

Largest Condom Company In The World

Karex manufactures some of the best-known brands in the world of preventive birth control. Two of the most popular names on its list of brands are Durex and LifeStyles. The company dominates approximately 10 percent of the global market in the condom world, which is a nice margin over its competitors.

IPO To Fund Increase In Productivity

Karex set its initial price at 1.85 Malaysian ringgit, or $0.58 per share. The stock surged up to 2.50 ringgit, or $0.79 per share before finally closing at 2.45 ringgit or $0.77 per share. This surge in price immediately following the IPO has boosted the company’s IPO value to approximately $23.5 million.

According to a report by Lee Yen Ling, an analyst for Maybank, Karex will be using the proceeds to boost its annual capacity to double what it is currently producing. This will mean that Karex is manufacturing 6 billion condoms annually.

Condom Shortage Leaves Karex In A Great Position

Ling notes in her report that “There is a shortage of condom supply in the market, as reported by the various NGO’s and government agencies. The other condom manufacturers are not committed to expanding their capacities.” She believes that Karex’ market share will increase by 5 percent by 2015.

RHB analysts agree with the report from Ling, saying that they believe condom consumption will “rise in tandem with the growing population.” The population is currently increasing by 1 billion people every 12 years, which means there will be approximately 8.1 billion people by the year 2025.

The Moral Of The Story

So, if you’re looking for a stock to invest in, which one should you choose? Twitter Inc. (NYSE:TWTR) is launching its IPO today, Facebook Inc. (NASDAQ:FB) is finally on the rise, and Apple Inc. (NASDAQ:AAPL) is holding steady. No, if you’re going to take a chance on getting screwed in the market… why not take that chance on a recession-proof product like condoms?

Disclosure: Author represents that he has no position in any stocks mentioned in this article at the time this article was submitted.