SBH Marine inks underwriting agreement with KAF Investment
KUALA LUMPUR: SBH Marine Holdings Berhad (SBH), a vertically integrated frozen seafood specialist had entered into an underwriting agreement with KAF Investment Bank Berhad (KAF IB) for the company’s initial public offering (IPO) on the ACE Market of Bursa Malaysia.
The IPO entails a public issue of 180 million new ordinary shares and an offer for sale of 50,000,000 existing ordinary shares.
Of the 180 million public issue shares, 45 million shares will be made available to the Malaysian public via balloting, 36 million made available to the eligible directors, employees and persons who have contributed to the success of SBH and its subsidiaries (SBH Group), 61 million shares made available to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI) while the remaining 38 million shares will be allocated by way of private placement to selected investors.
The 50 million shares under the offer for sale will be made available to Bumiputera investors approved by the MITI.
Pursuant to the underwriting agreement, KAF IB will underwrite a total of 81,000,000 of public issue shares made available to the Malaysian Public and the eligible directors, employees and persons who have contributed to the success of the SBH Group.
The SBH Group, primarily engaged in various stages of the frozen seafood supply chain, is headquartered in Kuala Kurau, Perak with a processing plant equipped with annual capacity of 4,800 tonnes.
SBH processes frozen seafood, especially shrimps and cephalopods, which are available in block frozen, semi-individual quick freezing (IQF), and IQF forms at its Kuala Kurau Plant.
It also operates two aquaculture shrimp farms located in Kuala Kurau and Selinsing, Perak cultivating black tiger prawns and whiteleg shrimps.
The group’s seafood products are mainly exported overseas to countries in the European, Middle Eastern and Asian regions.
SBH group managing director Tan Boo Nam stated, “With over two decades of experience, our Company, established since 2000, has positioned itself as a leading frozen seafood processing group with solid foundation in aquaculture shrimp farming.
“Our extensive involvement across the supply chain ensures the sustainable production of high-quality seafood products, meeting the expectations of our predominantly international customer base.
“We are extremely happy to have KAF Investment Bank as our sole underwriter and sole placement agent for our IPO.
This underwriting agreement marks a significant milestone in our corporate journey.
“It will enable us to enhance our capabilities in seafood processing, expand our aquaculture shrimp farming operations, and reinforce our commitment to delivering topquality frozen seafood products to our customers worldwide.”
The proceeds from the IPO will be strategically allocated for the development of Selinsing Farm, the construction of a new seafood processing plant, acquisition of machinery/equipment and motor vehicles, meeting working capital requirements, and covering listing expenses.
One of the strategic moves outlined in the expansion plan is the development of the remaining ponds at the Selinsing Farm, which are expected to be fully completed by the middle of 2027.
The further development of the Selinsing farm is expected to increase the total annual shrimp carrying capacity of both farms to 1,800 tonnes by 2027.
The company also has plans to venture further upstream by operating its own shrimp hatchery and nursery centre this year.
This initiative aims to further strengthen the group’s vertical integration, producing and supplying shrimp post larvae directly to its aquaculture shrimp farms which will further ensure self-sustainability and quality of its shrimp products.
Besides being the sole underwriter of SBH’s IPO, KAF IB is also the principal adviser, sponsor and sole placement agent for this exercise.