Poultry firm Hock Soon sets Main Market IPO price at 60 sen
KUALA LUMPUR (Jan 22): Poultry firm Hock Soon Capital Bhd has set its initial public offering (IPO) price at 60 sen per share for its upcoming Main Market listing on Bursa Malaysia, aiming to raise up to RM90 million.
The Perak-based family-run company is offering 100 million new shares to raise about RM60 million, mainly to fund a new poultry farm in Teluk Intan, according to its prospectus released on Thursday. The remaining RM30 million raised is from an offer for sale of 50 million existing shares, which will go to selling shareholders.
“Proceeds from our IPO will be used to support the next phase of our growth. We plan to develop a new poultry farm in Teluk Intan, expand our feed mill operations, and strengthen our distribution network to reach more customers more efficiently,” executive director Alex Ong Keat Hoe said at the launch of the prospectus.
He added that the group is also preparing to enter the Singapore market, which would allow Hock Soon to diversify its revenue base and extend its footprint internationally.
The expansion is still pending approval from Singapore Food Agency, the national authority that is responsible for food safety and security in the country for food imports, local production, and public health standards.
Hock Soon is primarily engaged in poultry farming, specialising in the rearing of layer chickens for the production and sale of table eggs to food manufacturers, as well as wholesale and retail markets. Ordinary eggs are sold either unbranded, under its in-house brand Qplus, or under customers’ brands, while premium eggs are marketed under the Qplus brand. The group also provides private-label packing and labelling services.
Upon completion of its planned Teluk Intan farm, Hock Soon’s total egg production capacity is expected to rise by 1.53 million eggs per day, on top of its existing capacity of 1.63 million eggs per day as of Dec 24, 2025, or an increase of about 95%.
The Teluk Intan facility will comprise 25 closed-house chicken coops, including five coops for pullets and 20 coops for mature laying hens. The new farm will be equipped with advanced automation systems, monitoring and control technologies, as well as a centralised egg grading and sorting station to enhance operational efficiency and biosecurity, according to the prospectus.
Currently, the group operates at the poultry farm in Bidor, Perak, which comprises 26 closed-house coops for mature hens and seven coops for pullets, with capacities of 1.74 million mature hens and 486,912 pullets respectively.
At the IPO price, Hock Soon is expected to have a market capitalisation of RM300 million, translating into a price-earnings ratio of 7.1 times based on its financial year ended Sept 30, 2025 (FY2025), during which it recorded a profit after tax of RM42 million on revenue of RM147.4 million.
This places the group in the mid-range among listed poultry companies. Its valuation is lower than QL Resources Bhd (KL:QL) at 33.9 times earnings and CCK Consolidated Holdings Bhd (KL:CCK) at 13.1 times, but higher than Teo Seng Capital Bhd (KL:TEOSENG) at 3.6 times and CAB Cakaran Corp Bhd (KL:CAB) at 4.5 times, according to AskEdge data.
Current shareholders are also cashing out part of their stakes via the IPO, including Keat Hoe and his brother Keat Qian, who is also an executive director. Their father Ong Boon Leng, who is the managing director, and their mother Lim Suk Gen, an executive director, are also selling their shares.
Following the IPO, the Ong family will hold a 70% stake in Hock Soon via their vehicle Ong Legacy Sdn Bhd which is subject to a six-month moratorium.
Overall, the IPO is offering a 30% stake in Hock Soon to the public. Applications for the offering will close on Jan 30, with the company scheduled to list on the Main Market of Bursa Malaysia on Feb 13.
M&A Securities Sdn Bhd is the adviser, underwriter and placement agent for the IPO.
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