Sik Cheong to expand vegetable oils business post-IPO

From left: Sik Cheong executive director Wong Hin Loong, managing director Wong Hing Ngiap, independent non-executive chairman Abdul Razak Haji Ipap, TA Securities Holdings Bhd executive director of operations Tah Heong Beng and head of corporate finance Dominic Seah.

PETALING JAYA: Sik Cheong Bhd aims to raise RM17.8mil via an initial public offering (IPO) exercise on the ACE Market of Bursa Malaysia with the money meant for expansion of its operations.

The refined, bleached and deodorised (RBD) palm olein repackaging firm’s IPO entails a public issuance of 66 million new ordinary shares as well as an offer for sale of 20 million shares by existing shareholders, priced at 27 sen per share.

Managing director Wong Hing Ngiap said 40.3% or RM7.2mil of the proceeds will go towards the expansion of the group’s existing packaging facility, known as Factory 9.

“This rebuild will facilitate our new product – high oleic soybean oil, creating an additional income stream for our group.

“The expansion also addresses the current space constraints for repackaging and storing RBD palm olein oil products at the existing facilities,” he said.

Expected to commence operations by the second quarter of 2026, Wong said Factory 9 will have a total built up area of 18,041 sq ft as well as an additional estimated capacity of 9,470 tonnes a year once completed.

Wong said Sik Cheong’s new venture into distributing high oleic soybean oil comes after factoring in high demand from the market as well as existing customers.

Sik Cheong is scheduled to list on Aug 13.