KUALA LUMPUR (April 15): Supreme Consolidated Resources Bhd, a distributor of frozen food products, has filed for an initial public offering (IPO) of 70 million shares on Bursa Malaysia’s ACE Market to raise funds for warehouse facilities expansion and working capital.

The retail offering comprises 8.6 million shares for application by the public and 7.65 million shares for application by directors, employees and business associates of the company, according to the draft prospectus.

The remaining 53.75 million shares will be placed out to Bumiputera investors approved by the Ministry of Investment, Trade and Industry.

BNDM Incorporated Holdings Sdn Bhd and Lim Ah Ted are the largest shareholders of Supreme Consolidated, holding 40.67% and 26.25% stakes respectively.

After the IPO, their deemed interest will be diluted to 34.05% for BNDM and 21.98% for Lim.  

Supreme Consolidated said it plans to use the IPO proceeds for the expansion of its warehouse facility, which will serve as an additional distribution centre for the company and cater to the expansion of its products. The company also plans to allocate some of the IPO proceeds for its day-to-day operations.

The company distributes third-party brands as well as its own brands of frozen and chilled food products, such as frozen meat and seafood, as well as ambient food and beverages (F&B) including milk, pasta, juices, as well as non-F&B goods such as detergents and toothpaste.

For the financial year ended Sept 30, 2023 (FY2023), Supreme Consolidated posted a profit after tax (PAT) of RM9.22 million, up 13% from RM8.16 million in FY2022, while revenue declined 4% to RM199.64 million from RM209.95 million. For FY2021, the company recorded a PAT of RM7.65 million on revenue of RM187.5 million.

The company said it envisages paying dividends of up to 50% of its annual PAT, subject to its financial performance, cash flow, and capital requirements.

Kenanga Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.