ACE Market-bound SBH inks underwriting agreement with KAF IB

From left: Mohd Salim Dulatti, independent non-executive chairman of SBH Marine Holdings; Tan Boo Nam, group managing director of SBH Marine Holdings; Rohaizad Ismail, CEO of KAF Investment Bank; Hon Kim Teng, director, corporate finance of KAF Investment Bank

KUALA LUMPUR: SBH Marine Holdings Bhd has signed an underwriting agreement with KAF Investment Bank Bhd (KAF IB) for its initial public offering (IPO on the ACE Market of Bursa Malaysia.

In a statement, the frozen seafood specialist said the IPO entails an issue of 180 million new shares and an offer for sale of 50 million existing shares.

KAF IB will underwrite a total of 81 million public issue shares, comprising 45 million made available to the Malaysian public via ballotting and another 36 million made available to the eligible directors, employees and persons who have contributed to the success of SBH and its subsidiaries.

A further 61 million shares will be made available to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miyi) while the remaining 38 million shares will be allocated by way of private placement to selected investors.

According to SBH, it primarily processes frozen seafood, especially shrimps and cephalopods, which are available in block frozen, semi-individual quick freezing (IQF), and IQF forms at its 4,800 tonne annual capacity Kuala Kurau Plant.

The proceeds from the IPO will be strategically allocated for the development of its farm in Selinsing, Perak.

In addition, it will also go towards the construction of a new seafood processing plant, acquisition of machinery/equipment and motor vehicles, meeting working capital requirements, and covering listing expenses.

"This underwriting agreement marks a significant milestone in our corporate journey. It will enable us to enhance our capabilities in seafood processing, expand our aquaculture shrimp farming operations, and reinforce our commitment to delivering top-quality frozen seafood products to our customers worldwide," said group managing director Tan Boo Nam.

KAF IB, 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 SBH’s IPO.