KUALA LUMPUR (Oct 9): LEAP Market-listed edible bird’s nest processor Enest Group Bhd (KL:ENEST) is seeking a transfer to the ACE Market alongside a public issue to fund its next stage of growth.

Under the proposed listing, Enest plans to issue 116.25 million new shares, representing an enlarged 20% stake, mainly to repay borrowings and fund its working capital.

Of that, 29.06 million shares will go to the Malaysian public. Its shareholders also plan an offer for sale of 15.05 million shares or a 2.59% stake. Post-exercise, the controlling Tan family will hold a remaining 45% stake combined, the prospectus exposure showed.

Enest mainly processes and sells bird’s nest products. China remains the group’s principal market, accounting for 67.4% of sales in the financial year ended Dec 31, 2024 (FY2024), followed by Malaysia at 31.4%.

Its net profit in FY2024 rose to RM8.04 million from RM6.67 million, as revenue rose to RM146.21 million from RM120.33 million in FY2023. The group’s gross profit margin was 10.3% in FY2024.

Its shares last traded at 14 sen apiece, valuing it at a market capitalisation of RM64.82 million.

According to its management, quality assurance and supply-chain traceability underpin its China franchise, as it noted that its units are among Malaysia’s notable exporters to China by traceability records.

Looking ahead, Enest intends to consolidate operations by relocating its Kajang processing facility and head office to a new site that will also house an in-house bottling line for ready-to-eat bird’s-nest and other herbal beverages — moving part of its outsourced bottling upstream for better quality control and product innovation.

The group cites expansion opportunities from growing demand in China and plans to broaden exports by targeting manufacturers of traditional Chinese medicine and wellness products, while also preparing to export raw uncleaned birds nest to China.

M&A Securities is the adviser, sponsor, underwriter and placement agent for the proposed exercise.