KUALA LUMPUR: Ocean Fresh Bhd made a strong debut on the ACE Market of Bursa Malaysia, opening at 85 sen per share, 204% above its initial public offering (IPO) price of 28 sen.
The frozen seafood processor and trader rose 187.50%, or 52.5 sen, to 80.5 sen at 10.16am. It was the most active counter on Bursa Malaysia with 93 million shares traded.
Ocean Fresh raised approximately RM14.01mil from its IPO exercise via the issuance of 50.05 million new ordinary shares at an issue price of 28 sen per share.
The group intends to utilise RM8mil as capital expenditure for its new cold storage facility in Kuantan, Pahang while another RM2.51mil will be used for working capital requirements.
The remaining RM3.50mil, meanwhile, will be used for estimated listing expenses.
Executive director Teo Chee Han said its new cold storage facility will enable it to maintain a higher level of inventories, increasing the maximum storage capacity of its existing cold rooms from 1,700 tonnes to 4,700 tonnes.
“This will be instrumental as we cater to the increasing demand for our products while also growing our exports of frozen seafood products to international markets particularly China, as well as to venture into the processing and trading of dried seafood products.”
Currently, the group’s processing facility has an annual maximum production capacity of approximately 18,000 tonnes of frozen seafood products by 18 units of semi-contact blast freezers and a total cold room storage capacity of 1,700 tonnes of frozen seafood products by three cold rooms.
The company closed its maiden trading day up 49 sen or 175% at 77 sen a share.
