KUALA LUMPUR (Oct 2): Camaroe Bhd (KL:CAMAROE) ended its first day on the ACE Market modestly higher after the prawn farming company’s share sale raised RM20 million.
The stock opened at 16 sen compared to its initial public offering (IPO) price of 14 sen per share. Camaroe climbed to as high as 16.5 sen before ending Thursday at 15 sen after nearly 93 million shares changed hands. At the last price, Camaroe was valued at RM74.25 million.
Camaroe’s first trading day was also marked by rising markets as Asian investors shrugged off US government shutdown. Malaysia’s benchmark FBM KLCI was up 0.4%.
Investor appetite for Camaroe’s shares during its IPO was decent, with the public portion oversubscribed by 15 times after receiving applications for 402.4 million shares worth RM56 million. The Bumiputera tranche was oversubscribed nearly seven times, while non-Bumiputera applications exceeded available shares by 23 times. Shares reserved for eligible persons were also fully taken up.
Only the private placement of new shares to approved Bumiputera investors was undersubscribed and subsequently reallocated to other investors. A separate private offering of existing shares was fully subscribed.
Founded in 2009, the company currently has operations in Tanjung Karang, Penor and Marang, and a processing facility in Kapar, Selangor, according to Camaroe. It owns 138 ponds across five coastal farms, producing both live and frozen prawns — head-on shell-on and peeled — for local wholesalers and export markets including China, South Korea and Taiwan.
Camaroe said nearly half of the RM13.86 million in gross proceeds raised from the public issuance for the company will be used to build a new processing plant in Bukit Raja by the first quarter of 2029, replacing the existing Kapar facility. The new plant will be equipped with upgraded machinery and solar panels to improve energy efficiency.
“With the new expansion, capacity will be increased to 1,500 tonnes per annum,” managing director Teoh Han Boon said at a virtual press conference after the listing.
The company also plans to set up an in-house biotechnology department to conduct laboratory testing and research and development in probiotics and supplements, aimed at boosting farming efficiency and sustainability.
It added that its vertically integrated model — spanning hatchery, farming, processing and distribution — underpins its emphasis on operational efficiency, biosecurity and sustainable aquaculture practices.
The IPO also raised a little under RM7 million, which will go to Teoh and executive director Low Saw Cheng, who sold part of their stakes in Camaroe. Overall, the IPO offered 30% of Camaroe’s enlarged share capital.
Chinese demand
Moving forward, Teoh expects rising demand from China, which has emerged as Camaroe’s largest revenue contributor over the past three financial years.
The company supplies black tiger prawns to Chinese end-customers via trading houses, which handle import licences and logistics.
“From our market surveys and trends, demand for black tiger prawns is rising strongly, especially from mainland China,” Teoh said, adding that the group also aims to re-enter the European market once its new facility is operational.
The company made a net profit of RM7.75 million for the year ended March 2025 on revenue of RM39.82 million.
M&A Securities acted as principal adviser, sponsor, underwriter and placement agent for the IPO.
