KUALA LUMPUR (Jan 5): Guan Huat Seng Holdings Bhd, which trades frozen and dried food, has launched its initial share sale that could raise more than RM35 million on the ACE Market.
The initial public offering (IPO) is priced at 25 sen apiece, valuing the company at RM118 million upon listing, according to the prospectus launched on Monday. The company will receive RM30 million from the IPO while RM5.25 million will go to existing shareholders.
Applications for the IPO will close on Jan 9, with the company scheduled for listing on Jan 22.
Founded in 1979, Guan Huat Seng is a Melaka-based distributor specialising in frozen foods and shelf-stable products. Through its subsidiaries, the group offers seafood, flavourings, dried foods, snacks and grocery products with halal-certified offerings.
Besides serving the domestic market, the company also exports to Hong Kong, the UK, the US, China and Australia, among others.
The public issue of new shares will gross RM30 million, of which RM12 million or 40% has been earmarked for partially financing the setup of a new integrated complex in Melaka while RM9 million or 30% has been set aside for financing of a new manufacturing facility in Krubong.
The remainder will be used for working capital, marketing expenses and to defray listing-related expenses.
Proceeds from the offer for sale of existing shares, meanwhile, will accrue to managing director Yeo Tien Ee, executive director Yeo Tian Seng and their mother Chan Kim Yeo. Their combined shareholding will be reduced to 70.23% following the listing.
TA Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.