SBH Marine Holdings Bhd (SBH) made its debut today (Apr 8) on the ACE market of Bursa Malaysia opening at a price of RM0.255, representing a 15.9% premium over its issue price of RM0.22 per share, with an opening volume of 21.23 million shares.
At 9.37am, the counter dipped slightly 0.265 sen from a high of 0.275 sen with a total volume so far at 87 840 200 shares. The stock climbed to 26.5 sen, up 20% from its listing price, at 9.05am after more than 53 million shares changed hands.
SBH raised a total of RM39.6 million through the public issue of 180.0 million new ordinary shares priced at 22 sen per share.
SBH which saw the public portion of its initial public offering (IPO) oversubscribed by 27.66 times, the company said in a recent Bursa filing, is optimistic about its prospects as it is well placed to benefit from the expected growth in frozen seafood market.
The IPO involved a public issue of 180 million new ordinary shares and an offer for sale of 50 million existing ordinary shares. All in all, the IPO involved the sale of an about 26% stake, and would value the company at RM195.36 million.
From this gross amount, more than 70% will be utilised for business expansion with 40.4% or RM16.0 million channelled for the development of Selinsing shrimp farm, 16.4% or RM6.5 million for the construction of its second seafood processing plant and another 15.4% or RM6.1 million for purchase of machineries/ equipment and motor vehicles. The remaining proceeds of RM7.0 million and RM4.0 million have been earmarked for working capital and listing expenses respectively.
The Company’s listed shares are classified as Shariah compliant by the Shariah Advisory Council of the Securities Commission Malaysia. The Company’s public issue portion which was made available to the Malaysian public via balloting was oversubscribed by a rate of 27.7 times with a total of over 10,000 applications for over 1.2 billion shares.
In attendance was the Menteri Besar of Perak Dato’ Seri Saarani Mohamad, an honorary guest for the listing ceremony, who said, “The Board of Directors of Perak SADC wholeheartedly supports the listing of SBH Marine Holdings Berhad on Bursa Malaysia. SBH Marine’s listing is in line with its mission and objective to develop the aquaculture sector in Perak as well as open up more employment opportunities and technical education on aquaculture to the local residents and the youth.
Through the Program Pembangunan Usahawan Perak SADC, its investments in such joint ventures have proven to successfully grown SMEs to higher levels. The successful listing of SBH Marine should be a role model to other entrepreneurs under the Program Usahawan Perak SADC in developing the agriculture activities in Perak.”
The Independent Non-Executive Chairman Mohd Salim Dulatti said, “We have been on the forefront of the seafood industry for over two decades, driven by our passion for crafting superior seafood products. With a focus on prawns, shrimp, cuttlefish, squid, and octopus, our vision is to provide fresh, sustainable, and high-quality seafood to the world. “Our success story is rooted in Perak, Malaysia, where our expansive Selinsing and Kurau shrimp farms, and our seafood processing plant are strategically located near to one another. Through strategic partnerships and our Titanium brand, we’ve earned recognition worldwide. Our commitment to adaptability and quality is evident in our premium product range and stringent safety measures. Looking ahead, we aim for further growth with plans for shrimp farm expansion, addition of a new seafood processing plant and our own in-house shrimp hatchery, solidifying our position in the industry.”
Earlier, SBH announced that the 45,000,000 Issue Shares made available for application by the Malaysian public have been oversubscribed.
Managing director Tan Boo Nam had expressed confidence, citing various factors, including the decline in wild fisheries, escalating consumer health awareness, a burgeoning global population, and increasing consumer affluence.
Tan highlighted encouraging indicators in the group’s frozen seafood processing and sales division, particularly noting heightened demand in Asian markets, which significantly contributes to their revenue.
“This will bode well with our expansion plans and our upcoming IPO, whereby we hope to deliver value to our shareholders in the years to come,” he said in an earlier statement .
SBH Marine specialises in processing frozen seafood, predominantly focusing on shrimps and cephalopods, with exports mainly directed towards Europe, the Middle East, and Asia. Presently, the group operates a seafood processing plant alongside two shrimp farms in Kuala Kurau and Selinsing in Perak.
SBH Marine reported its unaudited financial performance for the fourth quarter ending Dec 31, 2023 (FY23), with revenues reaching RM47.1 million and earnings amounting to RM4.1 million.
These figures contribute to a total revenue of RM191.3 million and earnings of RM12.5 million for FY23. Despite achieving a revenue level akin to FY22, SBH Marine noted a higher gross profit of RM32.1 million for FY23 compared to RM26.6 million for FY22.
KAF Investment Bank Berhad is the Principal Adviser, Sponsor, Sole Underwriter and Sole Placement Agent for this IPO.
