KUALA LUMPUR (Oct 8): Enest Group Bhd (KL:ENEST), which is seeking a transfer from the LEAP Market to the ACE Market of Bursa Malaysia, has received approval from the exchange to waive the requirement to extend the exit offer to shareholders.

In a filing on Tuesday, the bird's nest supplier said Bursa has also granted the company an exemption from the need to appoint an independent adviser for the proposed transfer.

The approval is conditional on the undertakings provided by all shareholders in their irrevocable written agreements remaining valid and binding until the completion of the transfer, Enest said.

Enest is principally involved in the processing of raw bird's nests into edible bird's nests in Malaysia and currently exports to China, Australia, Singapore and Taiwan.

On Aug 13, Enest announced plans to transfer from the LEAP Market to the ACE Market, with the transfer expected to be completed in the second quarter of 2025.

As part of the transfer, Enest will conduct an initial public offering (IPO) involving a public offering of 131.3 million Enest shares, representing up to 22.59% of the company’s enlarged issued shares, totalling 581.25 million shares.

The IPO will include the issuance of 116.25 million new shares, representing 20% of the enlarged issued shares, and an offer for sale of 15.05 million existing shares from major shareholders Tan Heng Guan and Tan Teh Sheng, representing 2.59% of the enlarged issued shares.

The final IPO price will be determined later, but based on an illustrative IPO price of 19 sen per share and a total of 581.25 million enlarged shares, the company will raise approximately RM22.09 million.

The group plans to use the proceeds for factory purchases, working capital, the purchase and installation of bottled bird’s nest production lines, and the repayment of bank borrowings.

Shares of Enest closed unchanged at 14 sen on Tuesday, giving the company a market capitalisation of RM65.1 million.

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