SBH Marine aims to raise RM39.6mil in proceeds from IPO for business expansion


KUALA LUMPUR: SBH Marine Holdings Bhd will raise gross proceeds of RM39.6mil from its initial public offering (IPO), with the lion’s share going towards business expansion.

In a statement, the processor and exporter of frozen seafood products, en route to a listing on the ACE Market of Bursa Malaysia on April 8, 2024, said it would utilise RM16mil of the proceeds to further develop its aquaculture shrimp farm in Selinsing, Perak, and spend RM6.5mil to construct a second seafood processing plant in Kuala Krau in Perak.

It would also allocate RM6.1mil of the proceeds for the purchase of new machinery, equipment and motor vehicles.

The remainder of the proceeds will go towards working capital and listing expenses.

Group managing director Tan Boo Nam said the group is committed to enhancing the integration of its frozen seafood supply chain by venturing further upstream to operate a new shrimp hatchery and nursery to produce its own shrimp post larvae for its shrimp farms by end-2024.

“This commitment ensures a more traceable and sustainable supply of products for our valued customers.”

SBH’s IPO entails a public issue of 180 million new shares and an offer for sale of 50 million existing shares Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti).

Of the public issue shares, 45 million will be made available to the Malaysian public via balloting, 36 million shares will go to the eligible directors, employees and persons who have contributed to the success of SBH and its subsidiaries, 61 million shares will be allocated to Bumiputera investors approved by 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.

Based on its enlarged issued share capital of 888 million shares and IPO price of 22 sen per share, SBH will have a market capitalisation of about RM195.4mil upon its listing on Bursa Securities.

Pursuant to the launch of SBH’s prospectus, applications for the public issue shares are open from today and will close at 5pm on March 25, 2024.

KAF Investment Bank Bhd, besides being the sole underwriter of SBH’s IPO, is also the principal adviser, sponsor and sole placement agent for this exercise.

WYNCORP Advisory Sdn Bhd is the corporate finance adviser of the IPO.