KUALA LUMPUR (July 16): Prawn farmer and processor Camaroe Bhd said on Wednesday that it has received approval from Bursa Malaysia for its listing on the ACE Market.
Camaroe received the greenlight for its initial public offering (IPO) on May 26, according to a statement from the company. The company did not provide a timeline. Under listing regulations, a company must complete its IPO within six months of approval.
"This IPO will allow us to increase production capacity, enhance operational efficiency through new machinery and technology, and strengthen our product quality through the establishment of a biotechnology department," said Camaroe managing director Teoh Han Boon.
Camaroe, founded in 2009, currently owns 138 ponds across five coastal prawn farms and a processing facility in Kapar, Selangor.
The company mainly processes live and frozen black tiger prawns, both head-on shell-on and peeled, to be distributed to local wholesalers as well as international buyers across China, South Korea and Taiwan.
Proceeds from the IPO will be allocated for the construction of a processing facility in Bukit Raja. The company plans to relocate its existing processing lines in Kapar to the new plant equipped with new machinery and solar panels by the first quarter of 2029.
Camaroe also intends to establish an in-house biotechnology department to conduct laboratory testing and research and development activities. The focus will be on probiotics and supplements to enhance prawn farming efficiency.
The IPO includes a public issuance of 99 million new ordinary shares that will raise funds for Camaroe and an offer for sale of 49.5 million existing shares, of which proceeds will accrue entirely to Teoh, executive director Low Saw Cheng and farm manager Teoh Kheng Huat.
All in all, the IPO will offer a 30% stake in the company that made a net profit of RM11.7 million on revenue of RM33.91 million in 2023.
M&A Securities is the principal adviser, sponsor, underwriter, and placement agent for the IPO.