KUALA LUMPUR (May 23): DSR Taiko Bhd is seeking a listing by way of introduction on Bursa Malaysia's LEAP Market for the durian planter's entire issued share capital of 312.94 million shares at 30 sen each to enhance the company’s corporate profile and enable DSR Taiko to tap into the equity market for future fund-raising.
DSR Taiko said it is scheduled for listing on June 27, 2022 subject to the receipt of Bursa's approval for the proposed listing.
"As at the LPD (latest practicable date of April 29, 2022), our company (DSR Taiko) has an issued share capital of RM49.46 million comprising 312.94 million shares.
"Based on our listing reference price of 30 sen per share and the issued share capital as at the LPD, our market capitalisation will be RM93.88 million upon our proposed listing," DSR Taiko said in its information memorandum which was filed with Bursa on Monday (May 23).
DSR Taiko said proceeds of RM25.75 million raised from the issuance of 85.84 million new shares at 30 sen apiece to 54 pre-listing investors prior to its proposed listing have been partially used as at the LPD.
Among the pre-listing investors are parties related to DSR Taiko co-founders Datuk Ng Lian Poh and Ng Soh Kian, namely Lian Poh’s wife Datin Lee Ah Noi (taking up 3.5 million shares or 1.12%), Lian Poh’s sister Ng Lee Peng (0.27%), Soh Kian’s sister Ng Sok Leng (0.32%) and Soh Kian’s brother-in-law Tee Pee Hoe (0.64%).
For the financial year ended June 30, 2020 (FY20), DSR Taiko made a loss after taxation (LAT) of RM169,000, on a revenue of RM303,000. The LAT expanded to RM473,000 in FY21, though revenue jumped to RM1.17 million.
The group said its revenue is mainly derived from the sale of fresh durians purchased from its suppliers, as well as the retail of D. Masking durian-based products — a brand DSR Taiko launched on March 15, 2021 to market its downstream durian-based products.
The group described itself as an integrated durian producer that specialises in the full spectrum of the durian agribusiness value chain, from upstream durian plantation to downstream activities.
DSR Taiko directors believe its business competitive strengths are plentiful, including its involvement in the full value chain of the durian industry and its plantations situated in traditional growing areas for cultivating Musang King durian.
“Being an integrated player, we are in a good position to capitalise on the growing prospects of the durian industry,” it said.
DSR Taiko plans to expand its durian plantations this year, conduct research and development (R&D) and commercialisation of new durian-based products, as well as introduce internet of things (IoT) solutions in its operations.
In the medium term — to accomplish by 2024 — it plans to expand its retail operations, including into the overseas market.