2 weeks Ago
KUALA LUMPUR: Supreme Consolidated Resources Bhd (SCRB) which is transferring its listing from the LEAP Market to the ACE Market of Bursa Malaysia, aims to raise RM17.5 million through the initial public offering (IPO). Priced at 25 sen per share, the exercise is scheduled for Nov 29.
The LEAP Market is an adviser-driven market accessible only to sophisticated investors. Meanwhile, the Sarawak-based fast-moving consumer goods (FMCG) company provides market access and coverage for consumer products in Sarawak and Sabah, focusing on distributing both third-party brands and its own frozen and chilled food products, ambient food and beverages (F&B), and non-F&B products. Non-independent executive chairman Datuk Richard Wee Liang Chiat said RM11 million or 62.
86 per cent of the IPO proceeds will fund warehouse facility expansion; RM4 million (22.86 per cent) will be allocated for working capital, with the remainder of the proceeds covering listing-related expenses. Wee highlighted that the company operates two distribution centres in Kuching and Miri, equipped with warehousing facilities and cold storage facilities, with capacities of 2,600 pallets and 680 pallets respectively, to support the storage and distribution of various types of consumer products.
"We expect the warehouse facility expansion to add more than 1,500 pallets, or 60 per cent of our total capacity, to cater for the expansion of SCRB’s products," he told the press conference after the prospectus launch here today. He also mentioned the company’s interest in exploring potential business expansion in Kalimantan in the near future. The prospectus notes that the company will have a market capitalisation of RM107.
5 million, based on an enlarged issued share capital of 430 million shares. The IPO will involve the issuance of 70 million new shares, representing 16.3 per cent of the company’s enlarged issued share capital.
Applications for the public issue are open from today and will close on Nov 15, 2024, at 5 pm. Kenanga Investment Bank Bhd serves as the IPO’s principal adviser, sponsor, underwriter and placement agent. - Bernama.
