KUALA LUMPUR: MYMBN Bhd has signed an underwriting agreement with Mercury Securities Sdn Bhd in conjunction with its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia.
MYMBN is principally involved in the processing and sale of edible bird’s nests (EBN), specifically the raw unclean edible bird’s nests (RUCEBN) to both local and international markets, particularly in China.
The company is targeting to launch its prospectus for its IPO at the end of the second quarter of 2023, and it will be the first bird’s nest processor to be listed on the ACE Market of Bursa Securities.
Mercury Securities is the principal adviser, sponsor, sole underwriter, and sole placement agent for the company’s listing exercise, which entails a public issue of 98 million new ordinary shares in the company.
Pursuant to the underwriting agreement, Mercury Securities will underwrite a total of 37.97 million new shares, comprising 19.3 million new shares made available for subscription by the Malaysian public via balloting and 18.67 million new shares set aside for subscription by eligible directors, employees, and persons who have contributed to the success of MYMBN and its subsidiaries.
“There is a rise in demand for Malaysian-produced EBN in recent years, not just locally, but also internationally such as in China and Vietnam. We believe that this encouraging consumers’ demand would augur well and put us in a strong position to pursue sustainable growth opportunities in our business,” MYMBN executive director and chief executive officer Lavernt Chen Vun Wo said in a statement.
“Our RUCEBN products are generally sold to manufacturers of bird’s nest-related products such as food and beverages, processors of raw clean edible bird’s nests (RCEBN), and traders of EBN products which are mostly exported to customers based in China,” he added.
MYMBN will be utilising its IPO proceeds to finance its capital expenditure in expanding processing facilities to facilitate its market expansion into Vietnam.
It also intends to use the proceeds to expand the distribution channel for the RCEBN segment, venture into halal ready-to-drink bird’s nest products market, and expand its network of bird’s nest collection centres by setting up three bird’s nests collection centre in Sabah and Sarawak.
“We are confident that this IPO will enable MYMBN to tap on opportunities to further enhance our visibility and corporate profile with investors, business partners, suppliers, and customers, and thus, cementing our position in the local and international markets,” Chen said.