JOHOR BARU: A1 AK Koh Group Bhd
(A1 AKK), which is to be listed on the ACE Market of Bursa Malaysia Securities Bhd on July 11, believes the Asian region offers good business growth prospects for the company.
Managing director Koh Ah Kuan singles out Malaysia and Singapore as the two countries in the region which continue to have promising outlooks.
“We want to strengthen and position the company as one of the leading players in the processed food, and food and beverage industry in both countries,’’ he said at the launch of the prospectus for the upcoming initial public offering (IPO).
Koh said Malaysia contributed 77.85% of the company’s total revenue last year, followed by Singapore at 9.32% and Vietnam with 8.05%.
Apart from these three countries, the company also exports its products to Brunei, the United States, China, Taiwan, Hong Kong, Australia, Indonesia, Canada, Mauritius, Japan, Thailand, Cambodia and the Philippines.
Chief operating officer Koh Lian Jie said the company wants to aggressively venture into the hotel, restaurant and café (Horeca) segment in Malaysia and Singapore.
The segment caters to the needs of the hotel, restaurant, café and catering businesses that provide food and beverage services as well as accommodation.
“Our strength is in processed food, hence our focus in supplying to the Horeca segment in Malaysia and Singapore would be a natural progression,’’ he said.
Lian Jie said there are good opportunities for the company in the Horeca segment in view of the number of Malaysians and Singaporeans preferring to dine out nowadays.
He said the company’s role would be similar to that of original equipment manufacturers in other industries, by producing ready-mixed ingredients and beverages for hotels, restaurants and cafes.
“It is also more convenient for them to use the ready-mixed ingredients especially when facing problems in hiring kitchen staff,’’ said Lian Jie.
The IPO entails a public issue of 109.2 million new shares and an offer for sale of another 109.2 million existing shares, each representing 13% of the company’s enlarged issued share capital of 840 million shares.
