Thursday 21 Nov 2024
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KUALA LUMPUR (Oct 28): Frozen food distributor Supreme Consolidated Resources Bhd (KL:SUPREME) has set its initial public offering (IPO) price at 25 sen per share, according to its prospectus launched on Monday.

The ACE Market IPO is expected to raise RM17.5 million for the Sarawak-based firm transferring its listing from the LEAP Market. The IPO comprises a public offering of 70 million new shares with no sale of existing shares, the prospectus showed. 

Applications for the IPO shares will close on Nov 15, and the listing is scheduled for Nov 29.  

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

About two-thirds of the IPO proceeds will be used to part-finance the expansion of the company's warehouse, while the rest will be used as working capital and to defray listing expenses.

The expansion includes an additional distribution centre and catering to more products, Supreme Consolidated said. There will be a new warehousing area, with cold storage facilities such as a freezer and chiller room, office, loading, and unloading bay.

Supreme currently has two centres equipped with warehousing facilities and cold storage facilities in Kuching and Miri, Sarawak, to cater to the storage as well as distribution of various types of consumer products.

"We believe this will provide a larger platform for fundraising and access to capital for our growth plans,” executive chairman Datuk Richard Wee Liang Chiat said in a statement.

The company will focus on enhancing its product range, broadening its distribution network in Sarawak and Sabah, and increasing its warehouse capacity, he added.

Under the public issue, the company is allocating 8.6 million shares to the public and 7.65 million shares to eligible persons. The public issue also involves 53.75 million shares through private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry.

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

Edited ByJason Ng
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