KUALA LUMPUR (Nov 26): Guan Huat Seng Holdings Bhd has secured approval from Bursa Malaysia Securities to list on the ACE Market, paving the way for its initial public offering (IPO) that will fund the expansion of its manufacturing and distribution facilities.
The Melaka-based frozen and dried food distributor said the IPO will comprise a public issue of 120 million new shares, representing 25.34% of its enlarged share base, and an offer for sale of 21 million existing shares or 4.44% of the enlarged share base.
The approval comes after the company filed its draft prospectus in May, outlining plans to channel a significant portion of the proceeds towards developing a new integrated complex that will house a storage area, product showroom, food processing unit, product development centre and administrative offices.
The development, which carries an estimated cost of RM23.28 million, is part of its broader push to scale its operations.
It also plans to fund the relocation of its manufacturing activities to a new facility in Krubong, Melaka, expected to cost RM11.73 million. Remaining proceeds will go towards working capital.
Managing director Yeo Tien Ee said the listing will help raise market awareness of the group’s products and support its ambition to reinforce its position as a “comprehensive food distributor and one-stop food ingredient provider”, backed by both in-house brands and third-party offerings.
Founded in 1979, Guan Huat Seng has expanded from food retailing into distribution and flavouring manufacturing. It currently distributes to wholesalers, retailers, food service operators, consumers and food manufacturers across domestic and overseas markets and holds Hazard Analysis and Critical Control Point (HACCP), Makanan Selamat Tanggungjawab Industri (MeSTI) and Halal certifications.
Some of its brand names include “Heng’s”, “Makbest”, “SunCity”, “McCann”, “OceanStars”, “Sky Chef”, “GHSHK” and “Cai Yan”.
Post-listing, the group plans to broaden its product range and open new retail outlets in Kuala Lumpur, Selangor and the southern region, such as Johor, Melaka or Negeri Sembilan.
Guan Huat Seng’s profit after tax has grown steadily, rising to RM6.74 million for the financial year ended July 31, 2024 (FY2024), from RM4.35 million in FY2023 and RM4 million in FY2022.
Its revenue expanded to RM84.82 million in FY2024, from RM81.34 million in FY2023 and RM71.22 million in FY2022. The distribution segment contributed 85.09% of FY2024 revenue, with retail making up the remaining 14.91%.
Under the public issue, 23.8 million shares will be made available to the Malaysian public, 14 million to eligible individuals within the group, 23 million to selected investors, and 59.2 million to Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
For the offer for sale, 21 million existing shares will be placed out to selected investors, with proceeds going to directors Chan Kim Yeo, Yeo Tien Ee and Yeo Tian Seng.
TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.