KUALA LUMPUR (Dec 11): Prawn farmer and processor Camaroe Bhd is seeking a listing on the ACE Market of Bursa Malaysia via an initial public offering (IPO) to raise fresh capital for capacity expansion and setting up a biotechnology department.

The proposed IPO includes a public issuance of 99 million new shares at a price to be determined later, according to the draft prospectus filed with the stock exchange on Wednesday.

The offering also comprises the sale of 49.5 million existing shares by existing shareholders, collectively accounting for 30% of the company’s enlarged share capital post-listing.

Under the public issuance, 24.75 million shares will be allocated to the Malaysian public, 12.38 million shares to eligible directors and employees, and 61.88 million shares to be placed with Bumiputera investors.

The promoters of the IPO include managing director Teoh Han Boon, who currently holds a 51.74% direct stake and an indirect 40.95% stake through his spouse, Low Saw Cheng, who is also Camaroe's executive director. Post-IPO, Teoh’s stake will be trimmed to 35.39%, while Low’s stake will be 28.76%.

Another promoter Teoh Kheng Huat will also see his stake reduced to 6.08% from 7.31%.

For the financial year ended Dec 31, 2023 (FY2023), Camaroe reported a profit after tax of RM11.7 million, an increase from RM8.46 million in FY2022, despite a decline in revenue to RM33.91 million from RM36.01 million during the same period.

Camaroe’s principal activities are the processing and sale of black tiger prawns, trading of vannamei shrimp and other seafood products, and the supply of prawn feed, aside from its prawn processing operations.

Camaroe plans to build a new prawn processing plant, the New Bukit Raja Processing Facility, and relocate its existing processing lines from the Kapar Processing Facility to the new plant by the first quarter of 2029.

The new plant will feature advanced technology, including chest freezers and a rooftop solar panel system, it noted.

Camaroe also intends to establish an in-house biotechnology department to conduct laboratory testing and research and development (R&D) activities. The focus will be on probiotics and supplements to enhance prawn farming efficiency.

M&A Securities Sdn Bhd serves as the principal adviser, sponsor, underwriter, and placement agent for the IPO.