SBH Marine starts taking orders from investors for RM50.6 million IPO


KUALA LUMPUR (March 18): Frozen seafood company SBH Marine Holdings Bhd began taking orders from investors on Monday for its initial public offering (IPO) that would raise up to RM50.6 million.

The IPO, priced at 22 sen per share, involves a public issue of 180 million new ordinary shares, and an offer for sale of 50 million existing ordinary shares, according to its prospectus. All in all, the IPO involves sale of about 26% stake, and would value the company at RM195.36 million.

Applications for the IPO shares will close on March 25, and listing on the ACE Market has been scheduled for April 8.

SBH processes and sells frozen shrimp, squid, octopus and cuttlefish, and farms black tiger prawns and whiteleg shrimp in Perak. The company’s existing processing plant in Kuala Kurau has an annual capacity of 4,800 tonnes.

The public issue of the IPO comprises 45 million shares for the Malaysian public, 36 million shares for eligible persons, 61 million shares for Bumiputera investors, and the remaining 38 million for select investors through private placement.

The company has earmarked RM16 million, or 40.40% of the proceeds from the new share sale, to develop its Selinsing farm. SBH will also spend RM6.5 million on construction of a new seafood processing plant, and another RM6.1 million to buy equipment and motor vehicles.

The balance will go towards meeting working capital requirements, and to defray estimated listing expenses.

The offer-for-sale tranche, meanwhile, allocates 50 million shares to Bumiputera investors, which will raise RM11 million, and proceeds will go entirely to the selling shareholders, including group managing director Tan Boo Nam and his son Tan Yuak Ming, who is the deputy managing director.

KAF Investment Bank is the principal adviser, sponsor, sole underwriter, and sole placement agent for the IPO. Wyncorp Advisory Sdn Bhd is the corporate finance adviser.