KUALA LUMPUR (Dec 11): Melaka-based frozen and dried food distributor Guan Huat Seng Holdings Bhd signed an agreement on Thursday for TA Securities Holdings Bhd to underwrite its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia.

TA Securities will underwrite 23.8 million shares allocated to the Malaysian public, Guan Huat Seng said in a statement.

“The signing of this underwriting agreement marks a significant step forward as we move closer to our listing. Our journey from a retail outlet in Kampung Pantai, Melaka to becoming a diversified distributor and retailer serving multiple market segments has been built on trust and quality,” said the company's managing director Yeo Tien Ee.

Founded in 1979, Guan Huat Seng has grown from food retailing into distribution and flavouring manufacturing. Today, it supplies wholesalers, retailers, food service operators, consumers and food manufacturers across domestic and overseas markets.

Its portfolio includes brands such as Heng’s, Makbest, SunCity, McCann, OceanStars, Sky Chef, GHSHK and Cai Yan.

Proceeds from the sale of new shares will fund the construction of a new integrated complex in Melaka, comprising expanded storage, food processing, product development, showroom and administrative facilities, as well as a new Krubong facility to boost production and storage capacity.

“The expansion of these facilities is expected to enhance our operational efficiency and support our future growth,” said Yeo.

Post-listing, Guan Huat Seng plans to broaden its product range and open new retail outlets in Kuala Lumpur, Selangor, Negeri Sembilan, Melaka and Johor.

Proceeds from the sale of existing shares will accrue to Yeo, his mother Chan Kim Yeo and brother Tian Seng. Their combined stakes will be diluted to 70.29% after listing.