KUALA LUMPUR (May 3): Ocean Fresh Bhd has signed an agreement with KAF Investment Bank (KAF IB) to underwrite the frozen seafood company’s initial public offering (IPO) on the ACE Market.
The company expects to be listed on the ACE Market by the third quarter of this year, Ocean Fresh said in a statement. The IPO comprises entirely of 50.05 million new shares, and there is no separate sale of existing shares, according to draft prospectus filed on Dec 12, 2023.
“We intend to grow our exports of frozen seafood products to international markets, particularly to China as well as to venture into the processing and trading of dried seafood products,” said Ocean Fresh’s executive director Siang Hai Yong. “We will need to increase our storage space to cater to the increasing demand.”
Ocean Fresh is principally involved in the processing and trading of frozen seafood products, as well as the provision of frozen seafood processing services to its customers in Malaysia, Türkiye, China, Thailand, Vietnam and Japan, among others.
Under the public issue, 10.51 million shares will be made available to the Malaysian public, of which at least 5.26 million shares will be set aside for Bumiputera investors. The company will also set aside 1.71 million new ordinary shares for eligible persons.
The remaining 37.83 million shares will be placed out to select investors.
Part of the proceeds raised from the IPO will be used as capital expenditure for the construction of a new cold storage facility, which would increase the group’s capacity from 1,700 tonnes to 4,700 tonnes.
The rest will be used as working capital requirements and to defray listing expenses.
KAF IB is also the principal adviser, sponsor and placement agent for the IPO.