KUALA LUMPUR (Sept 4): Coffee and tea extract powder blends manufacturer Butterfield FB Bhd said the Malaysian public offering under its initial public offering (IPO) was oversubscribed by 18.7 times, ahead of its ACE Market debut on Sept 15.
In a statement on Friday, the group said it received 12,670 applications for 786.67 million shares worth RM377.6 million, compared with the 40 million shares available to the Malaysian public.
The Bumiputera portion was oversubscribed by 20.98 times, with 7,773 applications for 439.62 million shares. Meanwhile, the public portion saw 4,897 applications for 347.06 million shares, representing an oversubscription rate of 16.35 times.
The 16 million shares made available to eligible persons were also fully subscribed.
In addition, the 94 million new shares and six million existing shares offered via private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry, and the 66 million existing shares offered via private placement to selected investors were also fully placed.
Butterfield executive director and chief executive officer Lee Mong Khai said the group is well positioned to accelerate its strategic growth plans, including expanding its Bukit Minyak premises, installing a fourth manufacturing line, and broadening its product range to cater to evolving consumer preferences.
“Separately, in line with growing market trends and the rising popularity of matcha, we have introduced a dedicated manufacturing line for matcha powder blends, with an annual production capacity of 312 tonnes. The line commenced operations in February 2026 as part of our ongoing business strategy,” he said.
Lee said the initiative reflects the group’s commitment to diversifying its product portfolio and capturing growth opportunities in the convenience-driven beverage market.
“Moving forward, Butterfield will continue to enhance its product offerings, ensuring that the group meets customers’ evolving requirements while providing high-quality, consistent and convenient beverage solutions,” he added.
Butterfield’s IPO, priced at 48 sen per share, comprises the issuance of 150 million new shares to raise RM72 million and an offer for sale of 72 million existing shares by deputy chairman Yeap Kim Siew and executive director Yeap Chin Loon, which will raise RM34.56 million for the selling shareholders.
The group is expected to have a market capitalisation of RM384 million upon listing. Based on its financial year 2026 (FY2026) earnings per share of 3.8 sen, the IPO price of 48 sen implies a price-to-earnings ratio of 12.63 times.
Products under the Penang-based manufacturer's “Butterfield” house brand include instant beverages, confectionery, food ingredients and baked goods.
M & A Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.