Butterfield FB ends maiden day of trade two sen lower than IPO price

Wednesday 07 Oct 2026

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KUALA LUMPUR (Sept 15): Butterfield FB Bhd (KL:BFIELD) ended its maiden day trade on the ACE Market on Tuesday at 46 sen, two sen or 4.17% lower than its initial public offering price (IPO) of 48 sen.

The tea and coffee mix manufacturer began trading at 43 sen, and hit an intraday high of 47 sen and low of 39.5 sen.

At market close, about 107.45 million shares changed hands. Its closing price values the group at RM368 million.

Butterfield FB's tepid opening comes despite being oversubscribed 18.7 times and follows a streak of subdued interest in newly listed companies as investors are cautious over the market amid escalating tensions in West Asia.

Just a day prior, oil and gas services provider United Asiapac Energy Bhd (KL:UNIPAC) had a flat debut on the ACE Market before closing 11.4% lower.

Butterfield FB’s IPO comprised a public issue of 150 million new shares, raising up to RM72 million for the company.

Of the sum, RM37.8 million has been allocated for working capital, mainly to purchase coffee and tea extract powders and other supplies. Another RM15.2 million will be used to expand the group's headquarters in Bukit Minyak, Penang, including the construction of additional production and storage space and the acquisition of machinery.

A further RM13 million will be used for strategic investments, and mergers and acquisitions in the brand owners of instant coffee and tea premix brands. The remaining RM6 million will be for listing expenses.

Butterfield FB is also planning for a fourth manufacturing line, lifting total annual production capacity to 12,597 tonnes. The group currently operates two manufacturing lines for coffee and tea extract powder blends, and has one matcha powder line that commenced operations in February with an annual capacity of 312 tonnes.

An offer for sale of 72 million existing shares by deputy chairman Yeap Kim Siew and executive director Yeap Chin Loon raised RM34.56 million for them. Kim Siew sold 21.6 million shares, while Chin Loon disposed of 50.4 million shares, leaving them with direct stakes of 23.8% and 31.1% respectively.

“Listing on the ACE Market gives us a stronger platform for the next stage of our development. With the resources raised from the IPO, we continue expanding our manufacturing capability, strengthening our operations, and developing new products, including our Matcha extract powder blends,” said Kim Siew at the listing ceremony.

The group has integrated manufacturing facilities in Malaysia and maintains warehouse and storage facilities in Thailand to support regional distribution.

M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.

Edited BySyed Azahedi

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