KUALA LUMPUR (Oct 14): Interior fit-out services provider Buenos International Bhd has filed the draft prospectus for its ACE Market listing to raise funds for the construction of its own cabinetry fabrication facility in Kuala Langat, Selangor.

Headquartered in Puchong, the group intends to use proceeds from its initial public offering to construct the facility, which will manufacture cabinetry components such as kitchen cabinets and wardrobes currently sourced from third-party suppliers.

Bringing cabinetry fabrication in-house is expected to give the group greater control over production schedules, improve coordination between fabrication and installation, and reduce its reliance on external suppliers, according to its draft prospectus. 

The proposed facility will occupy a 78,408 sq ft industrial site owned by the group, with a planned built-up area of 46,425 sq ft. Construction of the facility is expected to commence in the third quarter of 2027, with completion scheduled for the first quarter of 2029.

The group also intends to allocate proceeds from its IPO to fund working capital requirements, including purchases and subcontractors’ fees.

Its proposed IPO comprises a public issue of 80 million new shares and an offer for sale of 40 million existing shares. In total, the IPO will offer up to a 30% stake in the company.

Of the new shares, 20 million will be made available to the Malaysian public, eight million to eligible directors, employees and business associates, and 52 million through private placement to selected investors.

Group managing director Datuk Soon Kien Aik and his spouse, executive director Datin Yeo Lee Ling, will pocket some cash from an offer for sale of their existing shares in Buenos. Post-IPO, Soon is expected to remain as the controlling shareholder with a 50.84% stake — down from 66.05% — while Yeo’s stake will be reduced to 0.51%, from 10.64%.

Buenos provides interior fit-out services for both residential and commercial properties. Incorporated in 2011, the group is also a Grade G7 contractor registered with the Construction Industry Development Board Malaysia, which allows it to tender for projects involving building, civil engineering as well as mechanical and electrical works.

The group's profit after tax rose to RM6.21 million in the financial year ended Dec 31, 2025 (FY2025), up 6.1% from RM5.85 million in FY2024, after more than tripling from RM1.68 million in FY2023.

The strengthening bottom line comes as revenue surged 64.2% to RM90.11 million in FY2025 from RM54.89 million in FY2024, after rising 32.6% from RM41.4 million in FY2023.

Gross profit margin, however, narrowed to 21.8% in FY2025 from 28.75% a year earlier. Its profit-after-tax margin also declined to 6.89% from 10.66%.

Buenos had an unbilled order book of RM159.37 million as at Aug 31, 2026, which is expected to be recognised progressively over the next two to three financial years.

Customised cabinetry works accounted for RM120.99 million of the unbilled order book, while interior fit-out works contributed RM38.38 million.

KAF Investment is the principal adviser, sponsor, underwriter and placement agent for the IPO.