ACE Market-bound PT Resources Holdings Berhad today sealed an underwriting agreement with Mercury Securities in conjunction with its upcoming initial public offering (IPO).
Under this arrangement, Mercury Securities is the Principal Adviser, Sponsor, Underwriter and Placement Agent for the Company’s listing exercise, which entails a public issue of 135,000,000 new ordinary shares.
The securities firm will underwrite a total of 40,127,000 new shares, comprising 26,751,000 Shares made available to the Malaysian public via balloting and 13,376,000 Shares set aside for eligible Directors, employees and persons who have contributed to the success of PT Resources and its subsidiaries under the said agreement.
The Company is targeting to launch the prospectus for its IPO in the third quarter of 2022, which will be the first frozen seafood processor, wholesaler and retailer to be listed on the ACE Market of Bursa Securities. 27,995,000 new Shares will be placed out to selected investors and 66,878,000 to selected Bumiputera investors approved by the Ministry of International Trade and Industry.
PT Resources is principally involved in the processing and trading of frozen seafood products as well as retail trading of chilled and frozen meat, and non-meat products. Its frozen seafood products are sold to both local and international markets, particularly countries in the Asia Pacific the Middle East.
“The high and resilient demand for seafood, which is an essential component of a healthy diet, puts us in a strong position to pursue sustainable growth, not just locally, but also internationally,” Managing Director of PT Resources, Mr. Heng Chang Hooi said.
“According to the Independent Market Research Report, the average seafood consumption in Asia Pacific was the highest in the world at 33.9 kg per capita. While the per capita seafood consumption in the Middle East is relatively lower than the global average of 19.2 kg per capita, the Middle East imports relatively higher volumes of frozen seafood than other countries within the region. We thus recognise that these markets will continue to present opportunities for us to tap into and we intend to continue growing our exports to these markets.”
To facilitate its expansion, PT Resources has proposed to utilise its IPO proceeds to finance the Group’s capital expenditure for a new cold storage warehouse as well as working capital for the purchase of raw materials, which mainly comprise fresh and frozen seafood and meat products.
“The signing of the Underwriting Agreement brings us one step closer to our goal of an IPO to facilitate the Group’s expansion by financing the specific strategies and opportunities that we have identified such as growing our presence in the international markets and widening our local retail network through a licensing business model,” Heng Chang Hooi added.
“PT Resources is already known for its quality products that meet international food safety standards. An IPO will serve to further enhance their visibility and corporate profile with investors, business partners, suppliers and customers, and thus, strengthen its position in the international frozen seafood market,” Managing Director of Mercury Securities, Mr. Chew Sing Guan expressed.
