KUALA LUMPUR (Aug 18): Butterfield FB Bhd has launched its ACE Market listing that will raise RM72 million to expand its production facilities and fund working capital.
The initial public offering (IPO) is priced at 48 sen per share and involves the issuance of 150 million new shares. There is also an offer for sale of 72 million existing shares by two of its shareholders, which will raise RM34.56 million for the sellers.
Applications close on Sept 2 and it's scheduled to list on Sept 15.
The Penang-based company mainly manufactures coffee and tea extract powder blends under its “Butterfield” house brand, which are used in products ranging from instant and ready-to-drink beverages to confectionery and baked goods.
It also trades food ingredients and instant beverage premixes. Its manufacturing business accounted for 78.1% of revenue in the financial year ended April 30, 2026 (FY2026).
The group operates its manufacturing activities from its Bukit Minyak premises in Penang. It currently has two manufacturing lines for coffee and tea extract powder blends and another line dedicated to matcha powder blends.
A second coffee and tea blending line began operations in January, doubling annual capacity to 8,190 tonnes, while the matcha line started operations a month later.
Butterfield will use RM37.8 million or more than half of the IPO proceeds, for working capital, mainly to purchase coffee and tea extract powders and other supplies.
Another RM15.2 million will go towards expanding its Bukit Minyak premises, including constructing additional production and storage space and acquiring machinery, while RM13 million has been earmarked for potential strategic investments, mergers and acquisitions. The remaining RM6 million will cover listing expenses.
The expansion will allow Butterfield to add a fourth manufacturing line, which is expected to lift total annual production capacity to 12,597 tonnes, including its matcha line.
Butterfield will have a market capitalisation of RM384 million upon listing. Based on its FY2026 earnings per share of 3.8 sen, Butterfield’s 48 sen IPO price implies a price-to-earnings ratio of 12.63 times
For FY2026, net profit rose 13.2% to RM30.40 million from RM26.85 million a year earlier, while revenue grew 10.9% to RM272.13 million from RM245.33 million.
Revenue growth was mainly driven by stronger demand for coffee and tea extract powder blends from local and overseas customers, with manufacturing segment revenue rising 15.9% to RM212.64 million. Higher selling prices also supported sales during the year.
The 72 million existing shares being sold under the IPO belong to promoter and deputy chairman Yeap Kim Siew and promoter and executive director Yeap Chin Loon.
Kim Siew will sell 21.6 million shares, while Chin Loon will dispose of 50.4 million shares. Following the IPO, their direct stakes will stand at 23.8% and 31.1% respectively.
The group’s manufacturing business traces its roots to 2009, when Kim Siew ventured into manufacturing coffee and tea extract powder blends through Butterfield (M) Sdn Bhd. CEO Lee Mong Khai subsequently took over the management of the group in 2011.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO.