By DayakDaily Team
KUALA LUMPUR, Oct 28: Frozen food distributor Supreme Consolidated Resources Berhad (SCRB) today unveiled the prospectus for its initial public offering (IPO) exercise to raise RM17.5 million as part of its listing transfer from the LEAP Market to the ACE Market.
The IPO, priced at 25 sen per share, involves the issuance of 70 million new shares, with Kenanga Investment Bank Berhad underwriting 16.25 million shares including 8.6 million shares for the Malaysian public and 7.65 million for eligible directors, senior management, employees, and business associates.
The remaining 53.75 million shares will be privately placed with Bumiputera investors approved by the Ministry of Investment, Trade, and Industry (MITI).
SCRB said the funds raised from the IPO will be utilised to partly finance the expansion of the company’s warehouse which will serve as an additional distribution centre and to cater to the expansion of its products. The balance of the funds raised will be used for working capital and listing fees.
Meanwhile, applications for the IPO are open from today (Oct 28) until Nov 15. Balloting for the shares will be on Nov 19 and SCRB is scheduled to be listed on the ACE Market on Nov 29.
At the offer price of 25 sen, SCRB would have a market capitalisation of RM107.5 million, valuing the company at about 11.9 times price-earnings (PE) multiples of the financial year 2023 earnings.
SCRB’s executive chairman Dato Richard Wee said, “We believe this (transfer listing from LEAP to ACE Market) will signify a new chapter in our journey as we transition to the ACE Market, aligning to the (capital) market’s criteria, our company’s current scale and growth trajectory.
“The transition is expected to boost our liquidity through our wider investors’ base and enhance our visibility and hopefully draw in new partners.
“Additionally, we believe this will provide a larger platform for fundraising and access to capital for our growth.
“SCRB will focus on three key strategies. Enhancing our product range, broadening our distribution networks in Sarawak and Sabah and possibly West Malaysia, and increasing the warehouse capacity to meet our company’s growing needs,” he said in his speech prior to the launching of the company’s prospectus at a hotel here today.
SCRB is majority-owned by BNDM Incorporated Holdings Sdn Bhd (BNDM) which is the family vehicle of Wee with 40.67 per cent and Lim Ah Ted (26.25 per cent).
After the IPO, their deemed interest will be diluted to 34.05 per cent for BNDM and 21.98 per cent for Lim.
Meanwhile, SCRB, which made its debut in the LEAP Market of Bursa Malaysia in Jan 2019, is a fully integrated fast-moving consumer goods company based in Kuching, involved in the import, trading, and distribution of frozen, chilled, dairy, and dry food products in East Malaysia.
In March 2024, the company withdrew its listing from the LEAP Market to seek a transfer to the ACE Market.
The rationale of the transfer to the ACE Market is to provide the company with access to a bigger fundraising platform to support its expansion plan to realise its long-term potential.
Kenanga Investment Bank Berhad is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise of SCRB for the ACE Market listing. — DayakDaily
