Guan Huat Seng slips below IPO price on ACE Market debut
KUALA LUMPUR (Jan 22): Guan Huat Seng Holdings Bhd (KL:GHS) ended its first trading day on the ACE Market below its initial public offering (IPO) price, on weak demand for the frozen food trader.
The counter closed half a sen lower at 24.5 sen on Thursday, which is 2% lower than its IPO price of 25 sen per share. Guan Huat Seng traded in a tight range of between 23 sen and 24.5 sen, after nearly 31.2 million shares changed hands.
At the last price, the group had a market capitalisation of RM116 million.
Guan Huat Seng is the seventh company in three months to close below its IPO price on its debut.
SBS Nexus Bhd (KL:SBS), which listed last week, Powertechnic Group Bhd (KL:POWER), PSP Energy Bhd (KL:PSP), and BMS Holdings Bhd (KL:BMS) are the other ACE listings which closed lower than its IPO price. They are all still trading below their IPO price. Geohan Corporation Bhd (KL:GEOHAN) and Orkim Bhd (KL:ORKIM) are Main Market listings which debuted lower. Orkim managed to break the trend, while Geohan continues to trade below its IPO price.
Applications from public investors for Guan Huat Seng’s shares came in at about five times above the number of shares of available, the weakest subscription rate among the IPOs launched this year.
"Our focus continues to be in the disciplined execution of our business plan and delivery of results," said managing director Yeo Tien Ee, speaking to reporters at a virtual briefing after the debut.
Founded in 1979 and based in Melaka, Guan Huat Seng distributes frozen foods and shelf-stable products, including seafood, flavourings, dried foods, snacks and grocery items, with halal-certified offerings. The company also exports to China, Hong Kong, Korea, Singapore, Thailand and Australia.
Its portfolio includes brands such as Heng’s, Makbest, SunCity, McCann, OceanStars, Sky Chef, GHSHK and Cai Yan.
The IPO raised RM35.25 million, of which RM30 million was from the public issue of new shares and will be used for the construction of a new integrated complex in Melaka and a new manufacturing facility in Krubong, as well as for working capital, marketing expenses and listing-related costs.
The company is also planning to open two new retail outlets in the Klang Valley in the second half of 2026 and a retail outlet in Johor in 2027 to boost brand awareness and support existing customers.
The IPO also raised RM5.25 million for Tien Ee, executive director Yeo Tian Seng and their mother Chan Kim Yeo from an offer for sale of existing shares. Following the listing, the trio’s combined shareholding stands at 70.23%.
TA Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.
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