KUALA LUMPUR (July 29): Integrated aquaculture group Camaroe Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd to prepare for its initial public offering (IPO) on the ACE Market of Bursa Malaysia.
M&A Securities is the principal adviser, sponsor, underwriter, and placement agent for the IPO.
The group was founded in 2009 and specialises in the farming and processing of live and frozen black tiger prawns. It currently manages 138 ponds across five prawn farms, along with a processing facility in Kapar, Selangor. In addition to local wholesalers, it exports its products to China, South Korea, and Taiwan.
Based on Camaroe’s exposed prospectus on Bursa’s website, 99 million new ordinary shares will be issued, while an offer for sale of 49.50 million existing shares will be made to selected investors as part of the IPO.
The public will be issued 5%, or 24.75 million shares, of the group’s enlarged issued share capital, divided equally between Bumiputera and non-Bumiputera public investors. A total of 12.38 million shares will be allocated to eligible directors, key senior management, and employees through pink-form allocations.
A further 61.87 million shares, or 12.5%, are reserved for private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti).
Under the underwriting agreement, M&A Securities will underwrite 37.13 million shares meant for the Malaysian public and eligible pink-form applicants. The remaining shares will be privately placed to Bumiputera and selected investors.
Camaroe managing director Teoh Han Boon said the underwriting agreement marks a key milestone in the company’s listing. He expressed appreciation for M&A Securities’ support, and stated that IPO proceeds will be used to enhance processing infrastructure, adopt clean energy, and invest in biotechnology, to boost productivity and sustainability in prawn farming.
The infrastructure plan Teoh alluded to is the construction of a new processing facility in Bukit Raja, as outlined in the prospectus. The purchase of machinery, installation of solar panels, and the establishment of a biotechnology department are also included in the group’s strategy to expand capacity and improve sustainability.