ACE Market-bound PT Resources seeks RM49m from IPO to finance expansion

TheEdge Tue, Aug 30, 2022 05:09pm - 1 year View Original


KUALA LUMPUR (Aug 30): Frozen seafood products retailer PT Resources Holdings Bhd is aiming to raise RM48.6 million from its upcoming initial public offering (IPO) listing on the ACE Market of Bursa Malaysia to finance its business expansion.

The group, which is also involved in the trading of meat and non-meat products, plans to use RM17.6 million of the proceeds to build a new cold storage warehouse, and RM27.2 million for working capital — specifically the purchase of raw materials, which mainly comprise fresh and frozen seafood and meat products.

The remainder of the proceeds will be used to defray estimated listing expenses, said PT Resources in a statement.

PT Resources said its IPO entails a public issue of 135 million new shares at 36 sen per share, and that the group will have a market capitalisation of RM192.6 million upon listing.

Applications for PT Resources’ IPO opened on Tuesday (Aug 30) and will close on Sept 12.

Of the 135 million shares, 26.75 million shares will be made available for application by the Malaysian public, while 13.38 million shares will be set aside for eligible directors, employees and persons who have contributed to the success of the group and its subsidiaries.

Some 28 million shares will be reserved for placement to selected investors, while 66.88 million shares will be for placement to selected Bumiputera investors approved by the Ministry of International Trade and Industry.

PT Resources managing director Heng Chang Hooi said the planned 28,392 sq ft new cold storage warehouse will be equipped with six cold rooms to store frozen seafood supplies and products, chilled and frozen meat, as well as fruits and vegetables in different temperature ranges. It will also have an anteroom, five loading/unloading bays, and a three-storey office building.

“We want to take advantage of the growing frozen seafood market by expanding its capacity to store and produce high quality frozen seafood products to serve rising customer demand in the local and international markets.

“Therefore, we are allocating RM17.6 million to set up a new cold storage warehouse in Kuantan, Pahang. This will increase our storage capacity from the current 700 tonnes to 4,000 tonnes, and facilitate our plan to cater to the growing demand for our frozen seafood and other products,” he said.

The group was founded in 2012, when Heng first incorporated MO Foodmart Sdn Bhd and MHC Coldstorage Sdn Bhd. A processing facility was also set up in the Fisheries Complex of the Fisheries Development Authority of Malaysia (LKIM) in Kuantan to undertake the cleaning, cutting and freezing of seafood products.

As business grew, the group then came to own a processing facility in the Kuantan Integrated Fish Processing Park, six MO Foodmart™ outlets, one MO Wholesale Centre outlet, and an MO Signature™ online marketplace.

Its products are sold not just domestically but also exported to China, Saudi Arabia, and the United Arab Emirates.

Heng said there are opportunities for PT Resources to further expand its geographical presence in light of positive market prospects in the Asia Pacific and the Middle East, thanks to their respective high seafood consumption, and that the group plans to continue growing its exports to these markets.

“Domestically, we intend to expand our network of MO Foodmart™ outlets through a licensing business model. We are looking at finalising the appointment of licensees to open a minimum of three new MO Foodmart™ outlets by the end of 2023, prioritising expansion of outlets in the East Coast of Peninsular Malaysia.

“Nevertheless, we will continually assess the feasibility of opening additional MO Foodmart™ outlets in other states in the country when the opportunities arise,” he added.

Mercury Securities Sdn Bhd is the principal adviser, sponsor, underwriter, and placement agent of the IPO.

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