KUALA LUMPUR (Oct 15): RT Pastry Holdings Bhd, which runs a chain of bakeries, is planning to raise funds from the ACE Market to fund its next phase of growth.
The target is to open another five outlets in the Klang Valley and three in Pahang over the next two years, RT Pastry said in its draft prospectus filed with Bursa Malaysia. The expansion plan also calls for four outlets in the east coast of Peninsular Malaysia and expansion to the southern region by 2029.
“We intend to continue to expand our network of outlets in the central region as well as other states in Peninsular Malaysia,” RT Pastry said.
RT Pastry is founded and headed by Lu Chun-Neng, a 47-year-old Taiwanese who set up the first store in 2003 with his wife’s family. Lu enrolled in a short baking course in 1994 while working at a bakery in Taiwan.
He went on to work at various bakeries, including as the head chef of Singapore-based BreadTalk before relocating to Malaysia. The company, based in Seri Kembangan, now operates 17 outlets and all of them in the Klang Valley.
Proceeds from the initial public offering (IPO) will also be allocated for the purchase of new machinery and equipment — including a depositor, cake cutting machine, tray washing machine, and mould washing machine — as well as for the repayment of bank borrowings.
The company manufactures pastries and other products, including mooncakes, at its main plant in Seri Kembangan while its second plant in Shah Alam focuses on bread.
RT Pastry plans to acquire a property in Seri Kembangan or nearby areas to expand its storage capacity and provide additional space for manufacturing, research and development, and administrative operations.
The company estimated the acquisition cost of suitable property at RM25 million to RM35 million — to be funded through a combination of bank borrowings and internally generated funds. However, no property has been found so far.
For the year ended Dec 31, 2024, RT Pastry reported a profit after tax of RM5.01 million on revenue of RM60.27 million. Nearly all of the revenue is generated at its physical retail stores while online sales and wholesale account for less than 3%.
The IPO only involves issuance of new shares without any offering of existing shares, meaning that existing shareholders are not cashing out of the company. Post-IPO, Lu will continue to run the company as its chief executive officer.
Lu’s father-in-law, Lian Ming Wah, and his three uncles Lian Chong Wee, Lian Kok Wah, and Lian Ah Beng will remain as shareholders without any executive role. The senior management of RT Pastry are all unrelated to the major shareholders.
KAF Investment Bank Bhd is the principal adviser, sponsor, underwriter, and placement agent for the IPO.