KUALA LUMPUR (June 18): A1 AK Koh Group Bhd has opened applications for its initial public offering (IPO) on the ACE Market which could raise up to RM54.6 million.
Priced at 25 sen per share, the IPO’s public issue of new shares will raise up to RM27.3 million for expansion of the company largely known for its premixed soup spices, according to the prospectus issued on Wednesday.
Applications will close on June 30, and the company is scheduled for listing on July 11.
Founded in 1986 and based in Johor, A1 AK Koh manufactures and distributes over 340 processed food and beverage products, including snacks, noodles, seasonings, canned seafood and drinks.
The company also engages in contract manufacturing and sourcing for third-party brands. A1 AK Koh’s products, manufactured at its two plants in Senai and in Long An province of Vietnam, are exported to more than 10 countries.
A1 AK Koh plans to allocate RM5 million from its IPO proceeds to construct a new factory adjacent to its existing facility and RM1.8 million to upgrade the current manufacturing plant in Senai.
The company will also use RM8 million of the proceeds for marketing and promotional activities, RM4 million for working capital and RM4 million for repayment of bank borrowings. The remaining RM4.5 million will cover listing expenses.
Upon listing, A1 AK Koh is expected to be valued at RM210 million. The IPO price values the company at nearly 18 times its most recent earnings. For the financial year ended June 30, 2024, the company made a profit after tax of RM11.88 million on revenue of RM96.08 million.
Additionally, an offer for sale will raise RM27.3 million, with proceeds going entirely to the sole shareholder A1 Koh Malaysia Sdn Bhd, the private vehicle of founder Koh Ah Kuan, his wife Lim Sok Huey, and their four children.
Post-IPO, the Koh family will retain a 74% stake in the listed company.
AmInvestment Bank is the principal adviser, sponsor, underwriter, and placement agent for the IPO.