ACE Market-bound SBH Marine aims to expand business into China

KUALA LUMPUR: Frozen food exporter SBH Marine Holdings Bhd aims to expand its business aggressively so as to be able to get on board the Main Market of Bursa Malaysia within three years of its listing.

Executive director Saw Leng Hean said the Perak-based company, which is en route to a listing on the ACE Market of Bursa Malaysia, plans to increase its exports of frozen food products to the international market, particularly China, due to the strong market demand.

“We are targeting the China market this year, as our customers there have been asking us to include products currently available in the country,” he told reporters after the launch of SBH Marine’s prospectus on its initial public offering (IPO) yesterday.

This is in conjunction with its listing on the ACE Market on April 8, 2024.

Saw added that over 90 per cent of the group’s sales are derived from the European, Middle Eastern, and Asian regions.

“Our presence in the domestic market is small as there are many small producers, and as for SBH, we are more focus on the premium segment,” he said.

As for the listing on the ACE Market, Saw clarified that while the company fulfils the requirements to be listed on the Main Market, it plans to proceed cautiously in order to understand every aspect of the market.

“Our record shows that we qualify for the Main Market, but we actually approach the ACE Market as we want to ensure that we do step by step in whatever we do.

“We do not want to jump right at the top, as we want to learn from the process, improve ourselves and graduate from that.

“Moving forward, we are targeting (the Main Market listing) in the next three years,” he said.

Meanwhile, in a separate statement, SBH planned to raise up to RM39.6 million through the IPO, with more than 70 per cent of such proceeds allocated for business expansion.

“This will encompass further development of its aquaculture shrimp farm in Selinsing, Perak of RM16.0 million, construction of the second seafood processing plant in Kuala Kurau (RM6.5 million) and the purchase of new machinery, equipment and motor vehicles (RM6.1 million).

“The remaining proceeds of RM7.0 million and RM4.0 million have been earmarked for working capital and listing expenses, respectively,” it said.

The group said the IPO entails a public issue of 180 million new ordinary shares and an offer for sale of 50 million existing ordinary shares.